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Fiscal Year 2012
Business Plan
TABLE OF CONTENTS
OSTRaD Board of Directors ....................................................................................................... 1
Purpose ................................................................................................................................... 2
Mission ................................................................................................................................... 2
Vision...................................................................................................................................... 2
FY 2012 Goals and Objectives .................................................................................................. 2
Strategy .................................................................................................................................. 5
Programs ................................................................................................................................ 6
Governance and Operations
OCAST Structure ......................................................................................................... 12
Management Philosophy and Structure ........................................................................ 12
Professional Service Contracts ..................................................................................... 16
Standing Advisory Committees .................................................................................... 16
Finance ....................................................................................................................... 18
Appropriation History ................................................................................................. 18
Planning
Comprehensive Planning ............................................................................................. 19
Financial Planning ....................................................................................................... 21
Program and Service Planning ..................................................................................... 21
Five-Year Appropriation History by Program ........................................................................... 22
Sources and Uses of Revenues ................................................................................................ 22
This publication was issued by the Oklahoma Science and Technology Research and Development Board as authorized
by Title 74 of the Oklahoma Statutes, Section 5060.8. Approved by the OSTRaD Board of Directors on June 21, 2011.
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BOARD OF DIRECTORS
OCAST is a state agency governed by a 21-member board of directors consisting of the
secretary/executive director of the Oklahoma Department of Commerce, the chancellor of the
Oklahoma State Regents for Higher Education, the secretary of agriculture, the president of the
University of Oklahoma, the president of Oklahoma State University, the president of a private
university, the president of a regional university, twelve members appointed by the governor
and two nonvoting legislators representing the house and the senate. Members appointed by
the governor serve with the consent of the senate and generally serve four-year terms.
Mark Ashton, J.D.
Ashton, Wisener and Munkacsy
Lawton
Galynn Beer
Sales and Budget Director
Agro-Culture Liquid Fertilizers
Guymon
David Boren, J.D.
President
University of Oklahoma
Norman
V. Burns Hargis, J.D.
President
Oklahoma State University
Stillwater
Rhonda Hooper
President and CEO
Jordan Associates
Oklahoma City
Mike Jackson
Oklahoma House of Representatives
Enid
Glen D. Johnson, J.D.
Chancellor
State Regents for Higher Education
Oklahoma City
Clark Jolley, J.D.
Oklahoma State Senate
Edmond
W. Hershel Lamirand III
President and CEO
Oklahoma Health Center Foundation
Oklahoma City
David R. Lopez
Secretary of Commerce and Tourism
Oklahoma Department of Commerce
Oklahoma City
Timothy Mather, Ph.D.
Director of Research Administration
Oklahoma Medical Research Foundation
Oklahoma City
Chelle Melton, D.Ph.
Clinic Pharmacy
Guymon
Dayal T. Meshri, Ph.D.
President and CEO
Advance Research Chemicals Inc.
Catoosa
Jim Reese
Secretary of Agriculture
Oklahoma Department of Agriculture
Oklahoma City
Karl Reid, Sc.D.
Dean of Engineering, Architecture and
Technology
Oklahoma State University
Stillwater
Terry L. Salmon, Ed.D. (Vice Chair)
President and Founder
Computer System Designers LLC
Oklahoma City
E. R. “Tracy” Shirley III
Vice President and CFO
Harrison Gypsum Company
Norman
Edward L. Shreve, Ph.D.
Retired CEO and Businessman
Stillwater
Steadman Upham, Ph.D.
President
University of Tulsa
Tulsa
Sherri Wise (Chair)
President
Osteopathic Founders Foundation
Tulsa
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PURPOSE
The Oklahoma Center for the Advancement of Science and Technology (OCAST) was established
in 1987 as the state’s agency for technology-based economic development. OCAST’s mandate
is to “expand and diversify Oklahoma’s economy and provide new and higher quality jobs for
Oklahomans” by encouraging “. . . the development of new products, new processes and whole
new industries in Oklahoma.” (O.S. 74, Sections 5060.1a and 5060.2A)
MISSION
To foster innovation in existing and developing businesses
 by supporting basic and applied research
 by facilitating technology transfer between research laboratories and businesses
 by providing seed capital for innovative firms in the development of new products or
services
 by helping Oklahoma’s small and medium-sized manufacturing firms become more
competitive through increased productivity and modernization (O.S. 74, Section 5060.3)
VISION
OCAST funds cutting-edge science and technology through processes that are recognized
nationally and internationally for demonstrating excellence, objectivity and economic impact.
OCAST’s vision is continued growth and vitality of its basic premise of facilitating collaborations
between state government, universities, start-up companies and established large-scale firms
to develop an entrepreneurial environment which supports technology-based economic
development. OCAST’s strategy includes technologies such as biosciences, information
technology, sensors and electronics, advanced materials, energy and alternative fuel sources.
Achieving this vision will result in continued growth of advanced technology companies in the
state thereby increasing Oklahoma’s global competitiveness, per capita income and quality of
life.
FISCAL YEAR 2012 GOALS AND OBJECTIVES
Current economic uncertainties will likely have an impact on OCAST’s goals and objectives. The
staff and management of the agency have experience in managing through times of plenty and
the cyclical times of uncertainty. In highlighting the following goals and objectives, we are
keenly aware of the need to be agile and creative in adapting to change. At the same time, we
must be relentless in our dedication and steadfast in our duty to our stakeholders and the goals
of technology-based economic development.
Goal 1: Increase the impact of OCAST’s programs
Objectives
1. Continue to pursue additional funding through grants, cooperative agreements and
other opportunities to enhance and extend OCAST’s core programs and mission.
2. Initiate appropriate strategies to educate, inform and develop consensus among
stakeholders on strategically positioning Oklahoma to compete successfully in a
research and technology-based economy.
3. In response to client requests, maintain a year-round open solicitation for the Intern
program with one application submission date per quarter.
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4. Achieve an OCAST appropriation sufficient to meet market demand for technology-based
economic development programs and support, as defined by OCAST’s advisory
committees, affiliate organizations, clients, stakeholders and board.
5. Continue to review OCAST programs for potential updates, modifications and
opportunities to further streamline program operations to ensure they:
a. keep pace with the dynamic nature of research and advanced technology businesses;
b. operate with optimal effectiveness and efficiency; and
c. respond to new opportunities, within the context of budget and statutory
constraints.
6. Perform outreach to increase participation in OCAST programs by new companies and
new principal investigators.
7. Conduct:
a. one (1) $4 million Health Research competition
b. two (2) OARS competitions not to exceed $4 million
c. one (1) $1.5 million ONAP competition
d. one (1) $750,000 Plant Science competition
e. four (4) Intern Partnership competitions not to exceed $480,000
f. annual performance reviews for previously funded projects
8. Conduct workshops to provide clients with information on writing more effective
applications.
9. Conduct the annual Oklahoma Health Research Conference.
10. Continue to support i2E Inc. in meeting its FY 2012 objectives of managing the
Oklahoma Technology Commercialization Center (OTCC) program, the OCAST
Technology Business Finance Program (TBFP) and the Oklahoma Seed Capital Fund that
includes a new concept fund component.
11. Continue to collaborate with university technology transfer offices, non-profit research
foundations and federal laboratories to advance innovation and commercialization.
12. Continue to support the Oklahoma Manufacturing Alliance in meeting its FY 2012
objectives of assisting small- and medium-sized manufacturers to become
progressively more competitive in their marketplace.
13. Continue to support the Inventors Assistance Service (IAS) in meeting its FY 2012
objectives in assisting inventors with navigating the invention process from idea to the
marketplace.
14. Continue to support the Oklahoma Nanotechnology Initiative (ONI) in meeting its FY
2012 objectives.
15. Collaborate with i2E and other partner organizations to increase the number and quality
of Oklahoma Small Business Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) proposals. Help prepare SBIR/STTR companies for commercialization
through development and implementation of education, technical assistance, outreach
initiatives and collaboration with commercial partners.
16. Through the OCAST-Tulsa office and in cooperation with the Manufacturing Alliance and
i2E partners, become fully integrated into the economic development community of the
northeast region of Oklahoma by:
a. supporting growth and diversity in northeast Oklahoma’s economy; and
b. increasing the number of applications to OCAST programs from the northeast
region.
17. OCAST will provide administrative assistance as requested by the EDGE (Economic
Development Generating Excellence) Board of Investors and the EDGE Fund Policy Board.
18. OCAST will provide administrative/fiscal assistance to the Governor’s Science and
Technology Council as defined in Executive Order 2011-15.
19. Continue to enhance OCAST programs for greater impact across the state. Implement
improvements to impact-reporting processes to provide a more comprehensive and
demonstrable evaluation of OCAST’s programs.
20. Continue to expand and improve the efficiency of statewide program outreach activities.
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21. Continue to meet with individual legislators and statewide elected officials to better
acquaint them with OCAST clients and to inform them of the benefits of OCAST
programs in advancing our state through science and technology.
22. OCAST will continue attending legislative committee meetings to raise awareness of the
impact of pending legislation on existing OCAST programs.
23. OCAST will research technology-based economic development programs in other states
in its quest for continuous process improvement.
24. Continue the contract compliance audits begun in FY 2011 to ensure OCAST contracts
comply with all requirements set forth in the terms of the original contracts.
Goal 2: Increase public awareness of OCAST’s impact on Oklahoma
Objectives
1. OCAST will seek methods to expand audience acceptance of Oklahoma Innovations,
heard each week on the OCAST Radio Network. The program, now in its 16th year, is
produced and broadcast on the Clear Channel Communications Oklahoma flagship
station KTOK. It will be our goal to maintain the program’s integrity while attempting to
ensure a financially viable method for production and distribution to 11 radio station
outlets. The program currently is heard on two stations in Tulsa and one each in
Oklahoma City, Altus, Ardmore, Chickasha, Clinton, Duncan, Lawton/Ft. Sill, Woodward
and Wichita Falls, Texas.
2. Technology Information Services staff will continue and sustain exemplary media
relations to (a) fulfill a long-standing legislative directive to educate Oklahomans about
the benefits of science and technology and (b) help provide lawmakers with information
about OCAST programs and projects. In FY 2010 OCAST expanded media relations in
Tulsa and northeast Oklahoma while continuing to satisfy media needs throughout the
state.
3. OCAST will continually update the OCAST Web page to enhance public awareness of
innovation through OCAST and to provide a portal for Oklahomans seeking access to
OCAST programs. OCAST staff has developed an ongoing working relationship with the
Department of Central Services to secure state-sponsored Web design and development
to (a) satisfy 508 compliance (b) design an easily accessible and aesthetically pleasing
Web site (c) include electronic applications to simplify access to OCAST programs (d)
and expand the scope of OCAST’s services throughout the state. The Web page provides
an additional tool to access Oklahoma Innovations.
4. OCAST will renew the contractual relationship with an in-state marketing firm to
establish a branding process for OCAST to enhance the agency’s position as the leader
in technology-based economic development.
5. OCAST will sponsor and conduct Oklahoma Science and Technology Month in
cooperation with the state’s middle school and high school level science teachers and
create a setting conducive to expanded involvement by educators at the local level. The
year 2011 experienced program acceptance and the governor’s office supported and
assisted OCAST in marketing the effort.
6. OCAST will seek opportunities to target specific geographic areas of the state where we
will conduct activities to upgrade the level of media attention focusing on the value the
agency brings to that specific area of the state.
7. Individualized marketing assistance will be available to established OCAST programs
and initiatives.
8. OCAST has a relatively full suite of opportunities characterized by cooperating with
other agencies and organizations to present a unified front. Such a position will show
strength of Oklahoma’s commitment to advancing innovation and will keep lines of
communication open between OCAST and its partners in the interest of fulfilling the
OCAST mission. OCAST is an active member of the Oklahoma Rural Action Partnership
Program sponsored by the Oklahoma Department of Commerce.
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9. Ensure optimal benefit of OCAST’s collaboration in outside efforts to include, but not be
limited to, The Journal Record Innovator of the Year and Senator Tom Coburn’s grant-writing
workshops.
Goal 3: Continue to implement OCAST process improvements
Objectives
1. Review and improve the staff performance evaluation process in keeping with
requirements of the state Office of Personnel Management.
2. Continue to promote an environment that results in a high performance team.
3. Continuously review processes and procedures to identify and implement efficiencies
throughout the organization.
4. Maintain OCAST consolidated database and continue to incorporate historical data.
5. Enhance services delivered via the OCAST Web site to improve pre- and post-contract
award processes, reduce paper handling and postage costs and streamline other
business transactions for staff and clients.
6. Benchmark current best practices in research and technology-based economic
development through staff participation in national, state and local organizations.
7. Develop and implement a contract compliance workshop for all recipients of OCAST
program awards. Leverage outreach efforts through collaboration with affiliates, other
government agencies and private organizations.
8. Encourage employee career development, including completion of required supervisory
training.
9. Comply with external audits.
10. Continue to upgrade OCAST computer hardware and software as necessary to provide
staff the tools and most efficient means to serve clients.
11. Continue development and implementation of an electronic applications process for all
programs, through;
a. a collaboration with OCAST customers including research institutions and advanced-technology
companies and the Oklahoma Office of State Finance, and
b. beta testing and evaluation with customers.
12. Validate the delivery of contract requirements by continuing post-contract award
compliance reviews.
13. Maintain positive legislative relationships by continuing to respond to legislative
requests within two business days.
STRATEGY
For Oklahoma to increase its competitive advantage and relevance in the 21st Century, it is
imperative to support the process of discovery and development of new ideas, new
technologies and technology transfer that result in commercialization and significant economic
impact for our state and nation. OCAST’s strategy is to advance research and development that
help Oklahoma and its industries compete in the global economy.
Build on public and private sector strengths
 Provide leadership, information and assistance to enhance the ability of Oklahoma
technology companies and researchers to compete in the global marketplace.
 Offer short-term financial incentives and capital access vehicles requiring external
public and private sector co-investment, including concept and seed capital funding, to
better position Oklahoma companies for success.
 Advance economic development by conducting and publicizing studies that call
attention to improvements in technology policies and practices.
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Provide funding based on merit
 Evaluate funding applications according to published procedures and criteria to ensure
funds are awarded to applications with the greatest technical and commercial value.
 Utilize external peer review by recognized experts to make award determinations to
promote objectivity and avoid conflict of interest to the greatest extent possible.
 Work with standing advisory committees to continue to refine and improve OCAST’s
programs and external peer review process.
 Monitor and evaluate program performance on an annual basis to make certain tax
dollars are spent as intended and produce measurable outcomes that maximize the
return on the state’s investment.
Leverage resources for greater results
 Work with partner organizations and stakeholders to leverage their resources to extend
the benefit of the state’s investment.
 Build collaborations with private and public organizations to pursue federal and private
foundation funding to benefit existing programs and fund new initiatives.
 Involve standing or ad hoc advisory committees in all planning efforts.
Promote public and private partnerships and networks
 Continue to build on the Memorandum of Understanding between OCAST and the Oak
Ridge National Laboratory and between OCAST and the Oklahoma City Air Logistics
Center at Tinker Air Force Base to support research institutions and industry in
Oklahoma through collaborative projects and resource sharing.
 Explore opportunities to create additional Memoranda of Understanding with other
government organizations to encourage collaboration with Oklahoma’s research
institutions and private industry, with the goal of improving technology transfer and
increasing market opportunities.
 Work to re-establish the OCAST Centers of Excellence program and improve that
program’s effectiveness through the incorporation of OCAST’s commercialization
services and investment support.
PROGRAMS
OCAST develops, implements, evaluates and modifies programs and services designed to
encourage and enable Oklahoma advanced technology entrepreneurs, researchers and small
businesses to accomplish research and development, technology commercialization and
technology application. Clients return to OCAST programs as often as necessary for assistance.
The programs in the OCAST technology pipeline include:
Oklahoma Health Research
Goal and Strategic Objectives
The health program addresses OCAST’s statutory mandate of supporting health-related
research by allocating resources according to merit and leveraging private and federal
resources while fostering public and private sector collaboration.
Description
The Health program competitively awards seed funds for one- to three-year research projects
related to human health. Eligible applicants are Oklahoma universities and colleges, nonprofit
research organizations and commercial enterprises. These awards enable researchers to gain
expertise and produce data needed to obtain larger grants from other sources, including
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federal agencies and national disease-related funding organizations, and to develop patents
which can lead to new businesses. Researchers also benefit from OCAST’s annual health
research conference which focuses on ways to assist commercial development of new products
and services resulting from health projects.
Performance Measures
This program produces nationally competitive health science research. Private and federal
funding attributed to health projects and the ratio of health support to private and federal
support indicate the program’s effectiveness at securing capital for competitive research. The
amount of intellectual property generated, licenses and royalties are an indication of the
program’s impact on the state’s health science industry.
Oklahoma Plant Science Research
Goal and Strategic Objectives
The plant science program addresses the statutory mandate of supporting basic and applied
research in the field of plant sciences by allocating resources according to merit, promoting
collaborations and leveraging federal and private resources.
Description
The plant science program competitively awards funds for basic and applied research related to
plant science for one- to two-year periods based on technical merit, commitment of resources
and, in the case of applied research, the potential for market success. Eligible applicants are
Oklahoma businesses, institutions of higher education and nonprofit research institutions. The
applied research awards require a minimum of one dollar matching support for each dollar
awarded.
Performance Measures
Basic research projects – performance measures such as the amount of private and federal
funding leveraged by plant science projects, the amount of intellectual property initiated and
the anticipated value of patents, licenses and royalties resulting from these basic research
projects measure program success.
Applied research projects – performance measures include private and federal follow-on
funding attributed to plant science projects, intellectual property, license royalties, jobs
added/retained, payroll of jobs/retained, actual and projected gross sales, sales distribution
and actual and projected cost-avoidance resulting from these applied research projects.
R&D Intern Partnerships
Goal and Strategic Objectives
The intern program provides support for qualified research and development partnership
projects that involve Oklahoma industry and Oklahoma institutions of higher education. It
increases the pool of scientists, engineers, faculty and business entrepreneurs who can
contribute to economic development in Oklahoma.
Description
Projects funded under this program must meet five requirements: (1) an Oklahoma institution
of higher education or a business must be the fiscal agent; (2) OCAST funds must be equally
matched from non-state appropriated funds; (3) the research must be performed in an applied
research laboratory located at a firm, a nonprofit research institute or an institution of higher
education; (4) the mentor must be from industry or be an academic with a documented success
record of applied research and (5) an Oklahoma business must benefit. The award may be for
one or two years. The external reviewers, a majority of whom reside out-of-state, have shown a
preference for programs in which at least 75 percent of the funds (OCAST plus non-state
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match) go directly to the interns as salary and fringe benefits. The remaining funds are used for
principal investigator salary and fringe benefits as well as for supplies to run the program.
Performance Measures
The program produces commercially viable R&D. In addition, student and faculty interns gain or
maintain their interest in remaining in Oklahoma, increase desire for additional technological
education and provide measurable economic progress for the state.
Oklahoma Applied Research Support
Goal and Strategic Objectives
The Oklahoma Applied Research Support (OARS) program addresses the statutory mandate of
supporting applied research and technology development with significant commercial potential
by allocating resources according to merit, promoting collaborations and leveraging federal and
private resources.
Description
OARS competitively awards funds for one- to three-year projects from any technology area
based upon technical merit, potential for market success and commitment of resources. The
program requires a minimum of one dollar matching support for each state dollar awarded.
Eligible applicants are Oklahoma businesses and universities, colleges or nonprofit research
organizations that have industrial partners. The program gives preference to projects involving
collaboration between research institutions and private industry.
Performance Measures
This program produces commercially viable R&D. Federal and private funding attributed to
OARS projects and the ratio of OARS awards to private and federal support demonstrate the
program’s effectiveness at securing capital. Performance measures such as the value of
intellectual property, license royalties, jobs added/retained, payroll of jobs added/retained,
actual and projected gross sales and actual sales distribution and projected cost-avoidance
indicate the program’s effectiveness at technology transfer and the commercial value of
Oklahoma R&D projects.
Small Business Research Assistance
Goal and Strategic Objectives
The Small Business Research Assistance (SBRA) program addresses the statutory mandate of
supporting applied research and facilitating technology transfer involving small private for-profit
businesses by leveraging federal and private resources and promoting action,
encouraging strategic partnerships between firms and research institutions and promoting
commercialization of new technologies.
Description
Through the federal Small Business Innovation Research (SBIR) program, federal agencies
provide seed support for product feasibility studies and prototype development that is lacking
in the private investment community. The federal Small Business Technology Transfer (STTR)
program accomplishes this purpose and forges research collaborations between small firms and
universities or nonprofit research institutions. Both the SBIR and STTR programs encourage
transfer of technology into federal agency programs and private sector applications. OCAST’s
program supports these goals by defraying a portion of a qualifying firm’s federal SBIR or STTR
Phase I proposal preparation costs and providing bridge funding between Phase I and Phase II
federal SBIR and STTR grants. The program provides technical assistance to improve the quality
of proposals through proposal development workshops, proposal reviews, client referrals and
partnership with i2E’s new SBIR support services. The program offers companies guidance in
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accessing additional OCAST support and other resources as appropriate to their respective
stage of development.
Performance Measures
This program produces nationally competitive applied research, development and technology
commercialization. Federal and private funding attributed to projects and the ratio of OCAST
support to private and federal support indicate OCAST’s effectiveness at securing capital for
applied research and development. Performance measures such as the increase in federal
contracts, jobs added/retained and payroll of jobs added/retained indicate the successful
commercialization of technology by firms participating in the SBRA program.
Inventors Assistance Service
Goal and Strategic Objectives
OCAST contracts with Oklahoma State University to operate the Inventors Assistance Service
(IAS) program through the university’s New Product Development Center. The service addresses
the statutory mandate to provide Oklahoma inventors with information and training on
developing their invention and on issues related to patenting/licensing, marketing and
manufacturing. The service offers workshops, a Web site, referrals and on-site business and
technical consultations.
Description
The program assists the independent inventor in navigating the process from idea to
marketplace. IAS helps inventors move toward the manufacturing, marketing and distribution of
their products by providing assistance and information or referring inventors to appropriate
service providers who will help them deal with specific steps in the invention process. By
providing assistance and information or by referring inventors to appropriate service providers
who will help them deal with specific steps in the invention process, the program provides
inventors with a streamlined process to help move their innovation forward. Qualified inventors
nearly ready for commercialization receive help with activities such as materials testing,
marketing, engineering specifications and prototype development.
Performance Measures
Performance measures are specified in statute and include the number of clients, participants in
workshops, value of patents, license royalties, jobs created or retained and number of clients
progressing into other OCAST and federal programs.
Oklahoma Technology Commercialization Center
Goal and Strategic Objectives
The Oklahoma Technology Commercialization Center (OTCC) program addresses the statutory
mandate of facilitating technology transfer and commercialization and providing pre-seed and
seed capital for new innovative firms. The program operates under contract with OCAST and is
the product of OCAST’s strategy of promoting collaborations, allocating resources according to
merit, stimulating action and leveraging private resources.
Description
OCAST currently contracts with i2E, a private nonprofit organization, to operate the OTCC
program that assists entrepreneurs, early-stage technology companies and firms seeking to
commercialize new technologies. The program focuses on assessing needs, guiding clients
through the commercialization process and linking them to a comprehensive network of
technology sources (including Oklahoma universities) and commercialization services. The
program also provides specialized business development services, access to early-stage risk
financing and help in transferring technology. Beginning in FY 2012 OTCC, will include business
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development and commercialization services specifically targeted to Oklahoma’s SBIR and STTR
companies.
Performance Measures
Performance measures include number and type of project clients, activities with all clients,
amount and type of financing obtained for clients, jobs created and average wage/salary of new
technology-based companies.
OCAST Technology Business Finance Program
Goal and Strategic Objectives
The Technology Business Finance Program (TBFP) was authorized in the Technology Transfer
Act of 1998 to address the mandate of providing early stage capital to innovative firms and
manufacturers and for leveraging private investment capital.
Description
This program is designed to promote promising innovation and to support efforts to
commercialize in Oklahoma by providing early stage financing. The program requires a match
and includes payback provisions. OCAST contracts with i2E Inc. to operate this program.
Performance Measures
Performance measures include the number of start-up firms and/or manufacturers assisted,
survival rate of those organizations, amount of repayments and leveraging of other private and
federal dollars. In addition, the program manager submits an economic impact analysis of the
program, including such items as jobs and average annual salaries of jobs created/retained.
OCAST Seed Capital Program
Goal and Strategic Objectives
The seed capital program has been crafted to be an economic development tool with a goal of
making investment in early stage companies engaged in the commercialization of promising
new technologies in Oklahoma. Growing innovative Oklahoma companies that attract other
investment as they successfully commercialize their products and services is the ultimate goal.
Description
In general, through its seed capital program, OCAST seeks to provide funding to innovative
Oklahoma companies. The statute and the related constitutional amendment allow the state to
take an equity or debt position with firms – an authority that is unique to OCAST as a state
agency. Required co-investment with the private sector leverages the agency’s investment.
By statute OCAST was given multiple options as to how it could use appropriated funds to meet
economic development goals for seed capital stage companies. OCAST invests in Oklahoma
Seed Capital Fund LLC, currently managed as a wholly owned subsidiary of i2E Inc. Other fund
investors have included the Oklahoma Capital Investment Board (OCIB) and the Oklahoma
Development Finance Authority (ODFA). OCAST is the largest contributor to the fund and is the
Class A member, which includes the right to review and approve all proposed term sheets with
the advice of its investment committee.
Beginning in FY 2012, the Seed Capital program will include a concept fund intended to address
the needs of companies requiring smaller seed capital investment for earlier-stage projects.
Unlike TBFP, awards from the concept fund are convertible should the client pursue larger seed
capital investment at a later date.
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Performance Measures
Performance measures include the leverage of private investment funds, business finance
impacts resulting from OCAST investment (including job growth and economic impact on the
state) and expanding availability of investment capital for technology business development.
Oklahoma Nanotechnology Applications Project
Goal and Strategic Objectives
The Oklahoma Nanotechnology Applications Project (ONAP) is authorized by statute. This
project assists qualified Oklahoma companies with application of nanotechnology through
research, development and manufacturing and helps them improve current or create new
cutting-edge products or processes. These awards encourage nanotechnology collaboration
between industry, institutions of higher education and nonprofit research institutions.
Description
ONAP competitively awards funds for one- to three-year research and development projects
with an emphasis on nanotechnology applications in product development supporting the
Oklahoma manufacturing and business community. Universities must collaborate with private
industry to be eligible to participate in this program.
OCAST will contract to support the management of the Oklahoma Nanotechnology Initiative
(ONI). ONI provides a focus on the promotion and support of business, academic,
manufacturing, employment and investment initiatives related to nanotechnology and
coordinates activities on a regional basis for the benefit of Oklahoma. It provides education to
Oklahoma manufacturers and businesses as to the potential benefits of nanotechnology in
product and process innovation to help them better understand nanotechnology applications.
ONI also helps to identify potential applicants for ONAP funding and hosts the annual Oklahoma
nanotechnology symposium (Oklahoma NanoFocus).
Performance Measures
Performance measures include the number of nanotechnology applications funded, the number
of manufacturers and businesses educated, the number of regional and in-state collaborations
initiated and/or achieved, the number of jobs created or retained and the average wage/salary
of those jobs, the increase in gross sales and the number of manufacturers and businesses
served. The private and federal dollars leveraged by ONAP will also serve as an indicator of
overall performance.
Oklahoma Manufacturing Alliance
Goal and Strategic Objectives
The Oklahoma Manufacturing Alliance, an OCAST partner organization, addresses the statutory
mandate of stimulating manufacturing productivity and modernization. The Manufacturing
Alliance is nationally recognized for excellence in terms of its ability to respond quickly,
encourage action and leverage federal and private resources.
Description
The Oklahoma Alliance for Manufacturing Excellence Inc. is a private, nonprofit organization
that manages the programs which provide leadership and assistance to Oklahoma’s small- and
medium-sized manufacturers to help them become progressively more successful in their
marketplace. Through a network of extension agents and applications engineers, the
Manufacturing Alliance delivers real, hands-on resources for improving productivity, increasing
sales and reducing costs. Using federal, state, local and private funds, the Oklahoma Alliance
for Manufacturing Excellence Inc. contracts with local organizations to field regional
manufacturing extension agents who deliver to Oklahoma manufacturers services in technology
application, workforce training, financing, market assessment and business relations.
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Applications engineers, sponsored in part through Oklahoma State University, provide technical
assistance to manufacturers in rural areas where resources are limited. These locally accessible
applications engineers assist with mechanical designs, plant layouts and a variety of other
technical issues. OCAST provides a portion of the state funding and oversight for the system by
means of an annual contract with the Oklahoma Alliance for Manufacturing Excellence Inc.
Performance Measures
This program measures productivity through such measures as jobs created/retained, cost
savings, efficiency improvements, cost avoidance and capital investment.
GOVERNANCE AND OPERATIONS
Structure
Management Philosophy and Structure
OCAST’s management functions as a team, the success of which depends heavily upon the
cooperation, contribution and commitment of each player. The teamwork concept extends to
OCAST’s interactions with other agencies, organizations and stakeholders.
OCAST works closely with the business and financial sector to stimulate innovation in existing
and developing Oklahoma businesses. Therefore, in accordance with statute, all staff positions
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are unclassified, governed and compensated in a manner that compares to similar positions in
the private sector and, as listed below, are exempt from the Oklahoma Personnel Act.
Following is a list of approved positions:
Executive Director – Directs the administrative affairs and general management of OCAST.
Develops and directs implementation of strategic plans and policy related to OCAST’s
mission. Presents and communicates with governor, legislative subcommittees and
legislative leadership regarding OCAST’s annual budget request and any pending statutory
changes relevant to OCAST. Communicates regularly with local, state and national leaders
and organizations about OCAST and the importance of scientific research and the growth of
knowledge-based businesses to Oklahoma’s economy. The executive director is
accountable to the OSTRaD board. Unclassified / Annual salary of $96,027 effective July 1,
2009
Deputy Director – Responsible for the operations as assigned by, or in the absence of, the
executive director. Responsibilities include directing the formulation, implementation and
evaluation of programs, policies, procedures and standards; development of operating
plans, annual budgets and performance measures; represents OCAST at various meetings at
the local, state and national level. The deputy director is accountable to the executive
director. Unclassified / $70,000 - $85,000
Director, Administration and Finance – Responsible for the general administration of the
administration and finance division including developing appropriation requests and
operating budgets; developing, implementing and administering administrative procedures
for accounting, purchasing and office administration; maintaining all official records of the
board and agency. The director, administration and finance, is accountable to the executive
director in the handling of the agency’s general administrative affairs and finances including
the disposition of highly confidential proprietary material submitted by applicants.
Unclassified / $65,000 - $80,000
Director, Programs – Responsible for the general administration of the programs division
including the development, administration, evaluation and revision of research funding
programs, technology development and transfer activities and management of confidential
proprietary material submitted by applicants. Directs the staffing of program operations,
advisory committees, development and revision of program specifications, rules,
regulations and division budget and appropriation requests. The director of programs is
accountable to the executive director. Unclassified / $65,000 - $80,000
Director, Government Relations and Strategic Initiatives – At the direction of the executive
director, directs the design, development and implementation of agency legislative goals
and strategy for securing desired legislative and executive action and coordinates legislative
activities with all OCAST divisions. Proposes and drafts legislation relevant to new OCAST
programs. Serves as key strategic advisor to executive director. Coordinates with OCAST
staff to identify and document OCAST programs and services requiring assistance and
support of the legislature and governor. Directs special projects assigned by the executive
director. Directs research studies and reporting on various topics regarding technology-based
economic development. Represents agency before and organizes and facilitates
OCAST communication with public officials and local, state and national organizations.
Unclassified / $65,000 - $80,000
Associate Director – Responsible for designing, implementing, operating and evaluating
division programs and activities, as assigned. Recommends new programs and activities
related to the OCAST mission. A senior level technical strategist with a global perspective of
all programs to build collaborative efforts across academia, industry and government.
Supervises employees, as assigned. Responsible for the general administration of the
division in the absence of the director. Associate directors are accountable to supervising
directors and to the executive director for the correct disposition of highly confidential and
14
proprietary material submitted by applicants for OCAST funding and assistance.
Unclassified / $50,000 - $65,000
Public Information and Rural Outreach Manager – Writes articles and hosts radio and
television productions on the subject of technology-based economic development and
relevant Oklahoma programs and initiatives. Coordinates OCAST’s message with media
outlets and the general public. Works with related organizations such as chambers of
commerce and the Oklahoma Department of Commerce to promote Oklahoma research and
advanced technology companies. Responsible for facilitating cooperation in rural
technology-based economic development initiatives. This position reports to the director,
government relations and strategic initiatives. Supervises employees, as assigned.
Unclassified / $55,000 - $70,000
Client Services Manager – Responsible for the direct support of clients by facilitating
partnerships between small businesses and federal funding agencies to promote
commercialization of new technologies. Provide companies technical assistance in accessing
all OCAST programs and other resources as appropriate to their respective stage of
development. Unclassified / $45,000 - $60,000
Programs Officer IV – Supervises the planning, coordination or direction of a component of the
agency or program(s) established to accomplish a basic goal or mission of the agency. May
supervise one or more employees and/or contractors. Represents OCAST at conferences,
meetings and hearings related to OCAST’s administrative operations. Unclassified /
$45,000 - $60,000
Programs Officer III – Under minimal supervision, plans, coordinates or directs a component of
the agency or program(s) established to accomplish a basic goal or mission of the agency.
May supervise one or more employees and/or contractors. Represents OCAST at
conferences, meetings and hearings related to OCAST’s administrative operations.
Unclassified / $40,000 - $55,000
Programs Officer II – Under general supervision, plans and coordinates a component of the
agency or program(s) established to accomplish a basic goal or mission of the agency. May
supervise one or more employees and/or contractors. Represents OCAST at conferences,
meetings and hearings related to OCAST’s administrative operations. Unclassified /
$35,000 - $50,000
Programs Officer I – Under direct supervision, assists in developing, implementing, evaluating
and managing programs or program functions including program services and/or events.
May staff program advisory committees, including producing reports for board and/or
committee action. Administers small programs and projects, as assigned. Conducts surveys
and compiles and interprets results; provides consultation to staff to aid in the development
of appropriate assessment and evaluation for programs and services. Unclassified /
$30,000 - $45,000
Accountant IV – Responsible for accounting activities involving the supervision and direction of
accounting operations including planning, reviewing and organizing the work of assigned
staff; assuring availability of funds, preparing analysis of expenditures and monthly reports
of operations, financial statements, schedules and financial statistical data; working with
private sector clients and vendors as necessary in resolving problems. Unclassified /
$45,000 - $60,000
Accountant III – Under minimal supervision, classifies and posts revenues and expenditures.
Assures availability of funds for agency obligations and expenditures. Maintains accounting
records and files documenting financial transactions. Prepares analyses of expenditures and
monthly reports of operations, financial statements, schedules and financial statistical data.
Works with private sector clients and vendors in resolving invoicing and payment issues.
May supervise employees as assigned. Unclassified / $40,000 - $55,000
15
Accountant II – Performs a wide range of tasks involving the maintenance, analysis,
interpretation and reporting of financial accounting data and the application of generally
accepted accounting principles and theories in the management of financial accounts.
Includes maintenance of highly diverse accounts, financial analysis and reporting,
reconciliation of accounting data, reviewing and processing financial documents for
payment and similar responsibilities. Unclassified / $35,000 - $50,000
Assistant to the Executive Director – Under minimal supervision, assists the executive
director in managing the administrative affairs of OCAST. Serves as secretary to the board
and agency liaison with the governor’s office and the secretary of state. Organizes activities
and information associated with OCAST’s five-year and annual planning processes, assists
with agency projects and organizes the executive director’s time, confidential files and
correspondence. The assistant to the executive director is accountable to the executive
director in performing all duties. Unclassified / $30,000 - $45,000
Office Manager – Performs a wide range of tasks supporting the overall administrative and
information technology operations of the agency. Manages everyday tasks necessary for the
efficient running of the agency and is responsible for front-desk reception duties, ordering
agency office supplies and other assigned administrative and accounting duties. Position is
responsible for managing the flow of internal information for the agency including incoming
and outgoing mail, faxes and agency deliveries. Serves as the primary point of contact for
all facility related office equipment and technology issues. Other general tasks include
supporting agency personnel with communications and scheduling. Unclassified /
$30,000 - $45,000
Administrative Assistant II – Under general supervision, may assist in administering the
activities associated with developing, implementing, operating and evaluating programs and
functions. Assists in staffing board, committees, subcommittees and conferences including
preparing necessary materials and preparing minutes of meetings and setting-up and
maintaining files and records; may gather and summarize information for staff or
committee action. Composes and prepares program and administrative documents and
correspondence. Determines when to provide information to the public regarding routine
services, policies and regulations and when to refer it to a senior staff member for official
action or decision. Duties may also include reading, sorting, distributing and maintaining a
log of incoming and outgoing materials. May perform duties of receptionist. Unclassified /
$25,000 - $40,000
Administrative Assistant I – Under direct supervision, assists in administering the activities
associated with developing, implementing, operating and evaluating programs, including
assisting with conferences, workshops and other events. Prepares program documents and
correspondence. Assists in staffing board or program advisory committees, including
preparing meeting minutes and materials and maintaining required files and records. Duties
may also include reading, sorting, distributing and maintaining a log of incoming and
outgoing materials. May perform the duties of receptionist. Unclassified / $20,000 -
$35,000
Additional positions approved but not currently in use include:
Account Clerk
Accountant I
Administrative Services Manager I and II
Assistant Director
Comptroller
Director, Technology Information
Services
Human Resources Manager
Information Systems Network
Management Specialist III
MIS Coordinator
Program Coordinator I, II and III
Program Manager
Programs Officer I
Research Analyst
Senior Manager, Management Information
Systems
Senior Outreach Liaison
Senior Program Manager
16
Professional Service Contracts
OCAST uses professional service contracts to supplement capabilities and maintain low
administrative costs. Functions exist which, due to statutory or program requirements of highly
specialized and diverse expertise or infrequency, are more effectively and efficiently performed
by contract.
Some, though not all, specific professional services contracts can be anticipated at the outset of
the fiscal year. As of the date of submission of this business plan, the staff intends to execute
the following professional services contracts in FY 2012:
 Office of the State Auditor and Inspector for annual audit services, in an amount not to
exceed $30,000
 Office of Attorney General for legal services, one-half time for one year, in an amount
not to exceed $46,000
 Contract for an information technology enhancement of program database and
development and installation of an electronic application system to support the
programs division processes and data management in an amount not to exceed
$450,000
 Contract with Office of State Finance for IT services including personal computer
support, network support and database hosting not to exceed $50,000
 Continuation of contracts with Clear Channel Communications and Cox Radio KRMG for
the weekly radio show Oklahoma Innovations, in an amount not to exceed a total of
$50,700
 Contract with an in-state marketing firm to enhance the agency’s position as the leader
in Oklahoma technology-based economic development in an amount not to exceed
$40,000
 Continue contracting with the Oklahoma Alliance for Manufacturing Excellence Inc. to
operate the Oklahoma Manufacturing Alliance in an amount not to exceed $1,109,470
 Contract support for the operation of the Oklahoma Nanotechnology Initiative in an
amount not to exceed $100,000
 Continue contracting with Oklahoma State University to operate the Inventors Assistance
Service in an amount not to exceed $153,641
 Continue contracting with i2E Inc. to operate the Technology Business Finance Program
in an amount no to exceed the repayments and carryover funds currently in the program
plus an annual management fee of $194,487
 Continue contracting with i2E Inc. to operate the Oklahoma Technology
Commercialization Center in an amount not to exceed $1,808,241
 Contract with i2E Inc. to manage the Oklahoma Seed Capital Fund not to exceed
$375,000
 Contract with Presbyterian Health Foundation, dba Oklahoma Health Center Research
Park Corporation, to operate a technology-business incubator located in the Oklahoma
Health Center Research Park and appropriately equipped to meet the needs of start-up,
technology-intensive firms including, but not limited to, bio-technology and biomedical
firms (Title 74. Chapter 70, Section 5060.29) $100,000
Standing Advisory Committees
OCAST receives support and assistance from the Oklahoma Health Research, Oklahoma Plant
Sciences Research, Oklahoma Applied Research and Small Business Research Assistance
advisory committees for research-related programs. Research-related standing committees
must consist of representatives of the “business, higher education and research communities
(74 O.S., Section 5060.9[a])” and at least one-third of the members of each committee must be
researchers. Committees are approved annually by the board. The Seed Capital Investment
17
advisory committee is created to assist OCAST in evaluating potential investments with the Seed
Capital Revolving Fund (74 O.S., Section 5060.21).
Oklahoma Applied Research Advisory Committee
Kenneth E. Bartels, D.V.M., M.S.
Oklahoma State University
David Humphrey
Oklahoma Equity Partners
Larry Kennedy
Oklahoma Medical Research Foundation
E. Ann Nalley, Ph.D.
Cameron University
Karl Reid, Sc.D., P.E.
Oklahoma State University
E.R. “Tracy” Shirley III
Harrison Gypsum Company
Ed Shreve, Ph.D. (chair)
Stillwater
Dale Teeters, Ph.D.
University of Tulsa
Monte Tull, Ph.D.
University of Oklahoma
Oklahoma Health Research Committee*
William Canfield, M.D., Ph.D.
Cytovance Corporation
Tyrrell Conway, Ph.D.
University of Oklahoma
Mary Beth Humphrey, M.D. Ph.D.
University of Oklahoma Health Science
Center
Katherine M. Kocan, Ph.D.
Oklahoma State University
Jerry Malayer, Ph.D.
Oklahoma State University
Rodger McEver, M.D. (chair)
Oklahoma Medical Research Foundation
Kenton Miller, Ph.D.
University of Tulsa
Mack Roark, D.Min.
Shawnee
Hal Scofield, M.D.
Oklahoma Medical Research Foundation
*Appointed by the governor
Oklahoma Nanotechnology Applications Project Committee
Larry Grable, J.D.
Tomlinson & O’Connell P.C.
Jim Mason
Oklahoma Nanotechnology Initiative
David Schmidtke, Ph.D.
University of Oklahoma
Dale Teeters, Ph.D. (chair)
University of Tulsa
Ranji Vaidyanathan, Ph.D.
Oklahoma State University
Oklahoma Plant Sciences Research Advisory Committee
Peter Camfield, Ph.D.
Oklahoma Panhandle State University
Ronald L. Elliott, Ph.D., P.E.
Oklahoma State University
Rod Moesel (chair)
American Plant Products and Services Inc.
Richard Nelson, Ph.D.
Samuel Roberts Noble Foundation
David Porter, Ph.D.
Oklahoma State University
18
Seed Capital Investment Committee
James Dickson
BancFirst
David McKinney, J.D.
GableGotwals
Larry Pulliam
Southern Oklahoma Memorial Foundation
James Wheeler, Ph.D.
University of Oklahoma Price College of
Business
Sherri Wise
Osteopathic Founders Foundation
Small Business Research Assistance Committee
Colin Cumming
ICx Nomadics Inc.
Phillip Free, J.D.
Crowe and Dunlevy
James Grimsley, (chair)
Design Intelligence Inc.
Dorothy Overal
U.S. Small Business Administration
Ann Patten
Scrub Oak Technologies
Kay Wade
Logan County Economic Development
Council
Finance
OCAST’s programs, activities and general operations are financed primarily through state
general revenue appropriated funds. OCAST’s enabling statute authorizes the use of three
funds: the General Administration and Data Processing Fund, the Research Support Revolving
Fund and the Seed Capital Revolving Fund. Each of the three funds is authorized to accept state
general revenue appropriations, grants, gifts and donations. The Seed Capital Revolving Fund is
authorized to accept loan repayments and investment proceeds. Each fund is authorized to
finance specific activities of the agency.
The majority of OCAST’s annual state appropriation is transferred to the Research Support
Revolving Fund for operation of all OCAST programs. As instructed by the state legislature,
House Bill 2182 directs $3,966,355 to be paid to the Seed Capital Revolving Fund for FY 2012.
These funds will be transferred from the Research Support Revolving Fund to the Seed Capital
Revolving Fund in monthly allocations. The revolving funds have no fiscal year limitations. All of
the agency’s expenditures must be confirmed by Oklahoma’s Office of State Finance to be
consistent with an annual budget work program approved by that office.
Appropriation History
19.2
22.4 22.0
14.1
12.7
15.6
3.1
8.1 7.3 6.4 6.4 6.0 6.0
9.0
11.7 11.6 12.1 12.7
11.6 11.0 11.6 12.4
22.4 22.9
17.8
$0
$5
$10
$15
$20
$25
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Fiscal Year
millions $
19
PLANNING
Comprehensive Planning
OCAST produces an annual business plan and a five-year strategic plan. Based on data provided
by the National Science Foundation, OCAST benchmarks its funding compared with similar state
agencies in other states, especially those in the same region. Support of R&D funding by state
legislators in the region continues, although only one nearby state, Kansas, invests more in
technology-based economic development (TBED) than the national average of all U.S. states.
The National Science Foundation’s measure of state agency R&D expenditures per one million
dollars of the state gross domestic product is shown in Chart 1 below1. In the region, Oklahoma
ranks the third highest in state agency expenditures per $1 million of state gross domestic
product. Rankings did change for other regional states. Kansas with $100 per $1 million of
state gross domestic product, dropped from $130 the previous year while maintaining its No. 1
regional ranking. Missouri also lost ground by decreasing from $84 to $68 and coming in
fourth behind Oklahoma at $79. Oklahoma’s investment increased from $69 the previous year.
Arkansas increased its investment from $54 to $81, jumping from fourth place behind
Oklahoma the previous year, to second place in the region.
Chart 1: State Agency R&D Expenditures per
$1 Million of State Gross Domestic Product
26
79 81
100
9
32
51
68
0
20
40
60
80
100
120
NM TX LA CO MO OK AR KS
Due to NSF survey differences, the metric should be interpreted as a rough measure of the ratio
between the amount of state agency R&D funding and the size of a state’s economy.
U.S rankings show an average of $89. Among the eight regional states, only Kansas surpasses
the national average state expenditure per $1 million of state gross domestic product.
States Continue Tech-Based Investments
Although most all states struggled with state budgets due to the recession, several states found
funding to advance tech-based economic development. For example:
 Georgia’s Centers of Innovation program will be integrated with the programs of the
Georgia Research Alliance (GRA). The goal for integrating the programs is twofold: to
maximize potential for high-tech companies generated from university R&D, and to
1 National Science Foundation (NSF), Science and Engineering Indicators, 2010. Data excludes state-run colleges and
universities as well as laboratories or experiment stations controlled by universities; funding from these institutions is
collected and classified as academic R&D expenditures. Data may include some non-R&D activities such as
commercialization.
20
leverage the resources of Georgia’s research universities to retain and recruit companies
in industries considered crucial to the state’s growth. GRA is slated to receive $7.5
million in FY 2012, which includes $3 million in bond funding to purchase equipment
and fund R&D infrastructure. This is a decrease from the $16.7 million revised FY 2011
budget.
 Colorado Governor John Hickenlooper signed into law a tax break on agricultural
products and an extension of a tax-credit program for angel investors. That measure
continues a program offering tax credits to investors who give at least $25,000 to a
small Colorado business that is less than five years old and is involved in the research,
development or manufacturing of new technologies, products or processes.
 Bioscience Connecticut will improve the capacity and productivity of research, enabling
the University of Connecticut Health Center to double federal and industry bioscience
research grants. The result will be new technologies that can be transferred to industry,
strengthening the competitiveness of existing Connecticut businesses and creating new
enterprises. Connecticut Governor Dannel P. Malloy says the law will improve access to
health care.
 Illinois Governor Pat Quinn has launched the Illinois Innovation Network (IIN) to give
entrepreneurs resources needed to build and grow businesses and jobs. The governor
announced Illinois is joining in the national effort to promote high-tech
entrepreneurship by connecting the IlN with Startup Illinois, a component of the Startup
America Partnership announced by President Obama earlier this year. Startup Illinois will
let Illinois-based affiliates and entrepreneurs leverage technology, content and tools to
access national resources, and celebrate local startup successes on a national stage.
 Maryland is accelerating and leveraging its investment in the space industry. Governor
Martin O’Malley has unveiled a bold new initiative to increase business development and
commercialization opportunities of the state’s space industry. Maryland hopes to
leverage federal facilities and institutions of science and discovery to unlock economic
potential of the state’s space sectors.
State Science and Technology Indicators
NSF uses 52 indicators to measure state science and technology infrastructure, of which 20 are
listed in the accompanying table. The other 32 indicators are related to elementary and
secondary education, higher education and workforce and were not included in the table below.
The NSF science and technology indicators listed in the table below are related to financial R&D
inputs, research development outputs and S&T in the economy. Of the 20 indicators, Oklahoma
strengths included eight measures in the 2nd quartile and two measures in the 3rd quartile,
with the remaining measures providing opportunities for improvement.
National Science Foundation Oklahoma S&E Indicators2
Indicators Year
Financial Research and Development Inputs
R&D as Share of Gross Domestic Product 4th quartile
Federal R&D Obligations per Civilian Worker 4th quartile
Federal R&D Obligations per Individual in S&E Occupation 4th quartile
State Agency R&D Expenditures per $1 Million of Gross Domestic Product 3rd quartile
State Agency R&D Expenditures per Civilian Worker 3rd quartile
State Agency R&D Expenditures per Individual in S&E Occupation 3rd quartile
Business-Performed R&D as Share of Private-Industry Output 4th quartile
Academic R&D per $1,000 of Gross Domestic Product 3rd quartile
Research and Development Outputs
S&E Doctorates Conferred per 1,000 S&E Doctorate Holders 2nd quartile
2 NSF Science and Engineering Indicators, State Indicators Section, Chapter 8, 2010.
21
Academic S&E Article Output per 1,000 S&E Doctorate Holders in Academia 3rd quartile
Academic S&E Article Output per $1 Million of Academic R&D 2nd quartile
Academic Patents Awarded per 1,000 S&E Doctorate Holders in Academia 3rd quartile
Patents Awarded per 1,000 Individuals in S&E Occupations 3rd quartile
Science and Technology in the Economy
High-Technology Share of All Business Establishments 3rd quartile
Net High-Technology Business Formations as Share of All Business Establishments 2nd quartile
Employment in High-Technology Establishments as Share of Total Employment 3rd quartile
Average Annual Federal SBIR Funding per $1 Million of Gross Domestic Product 4th quartile
Venture Capital Disbursed per $1,000 of Gross Domestic Product 4th quartile
Venture Capital Deals as Share of High-Technology Business Establishments 4th quartile
Venture Capital Disbursed per Venture Capital Deal 4th quartile
States that excel in these rankings rely on continued federal, state and private investments in
technology-based economic development.
Financial Planning
OCAST is required by statute to “recommend an appropriate level (of funding for OCAST’s
programs) . . . that will make these programs nationally competitive with those of other states”
and to “adopt . . . a threshold funding level for each of the programs . . . that is great enough to
have a significant impact and carry out the intent of this act.” (74 O.S., Section 5060.22)
After the governor and legislature approve the OCAST appropriation, staff and board members
develop a business plan for the application of available resources, abiding by the directives and
constraints on spending articulated in the signed appropriation bills. Unless established
otherwise by the board, the threshold funding levels are the FY 2012 appropriation levels
shown in this plan (see Five Year Appropriation History by Program below).
Program and Service Planning
OCAST develops and initiates new programs and services by building consensus among
constituents and stakeholders, which may include standing and ad hoc program advisory
committees, higher education and career-tech representatives, nonprofit organizations,
businesses, other agencies and state leaders. Most OCAST programs are initiated through
legislative intent.
When it is evident a need or opportunity should be an OCAST priority and is consistent with
OCAST’s mission, staff checks relevant statutes and, when necessary, consults with the state
Office of the Attorney General to determine whether OCAST’s general authorization covers the
need/opportunity. If so, a recommendation is submitted to the OSTRaD board.
Specifications for each new program are designed by OCAST staff working in consultation with
a standing or ad hoc advisory committee and the Office of the Attorney General. Appropriate
state and national experts are frequently consulted in this phase of program design. The board
may provide advice and guidance.
The information is presented to the OSTRaD board for consideration and approval.
22
FIVE YEAR APPROPRIATION HISTORY BY PROGRAM
Activities FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
General Administration $ 690,750 $ 690,750 $ 850,000 $ 739,075 $ 687,340
Program Services and Support 0 0 1,354,675 1,368,970 1,304,000
Health Research 4,823,619 4,594,117 4,253,299 4,000,000 4,005,219
Applied Research 4,160,760 4,428,545 3,907,100 1,900,000 2,341,616
Intern Partnership Program 558,994 558,994 599,149 260,000 241,800
Plant Science Research 600,000 702,568 567,983 709,656 659,980
Nanotechnology Research 1,221,302 1,421,302 1,437,100 1,500,000 720,000
Manufacturing Extension Services 1,575,453 1,532,166 1,372,028 1,192,978 1,109,470
Technology Commercialization 3,233,657 3,247,319 2,914,776 2,534,398 2,052.728
Small Business Research Assistance 371,070 377,648 338,500 200,000 186,000
Inventors Assistance 223,567 184,483 190,000 165,205 153,641
Technology Information Services 347,335 368,615 373,031 316,916 383,300
Seed Capital Fund 650,000 4,350,000 3,868,922 4,264,898 3,966,355
Bioenergy Center 4,000,000 0 0 0 0
Biofutures Institute 500,000 0 0 0 0
TOTAL FUNDING$22,956,507 $22,456,507 $22,026,563 $19,152,096 $17,811,449
ADMINISTRATIVE COSTS 3.01% 3.08% 3.86% 3.86% 3.86%
SOURCES AND USES OF REVENUES
Sources:
Reserves for OCAST Out-Year Obligations $ 9,763,979
Reserves for Seed Capital Obligations 10,362,297
Projected FY-2011 Available Carryover 1,501,777
FY-2012 State Appropriated Revenues 17,811,449
TOTAL SOURCES $39,439,502
Uses:
Projected FY-2012 Expenditures
Administration $ 687,340
Program Services 1,629,000
Programs
Health Research 4,585,443
Applied Research 3,039,587
Intern Partnership Program 354,276
Nanotechnology Research 1,311,955
Plant Science Research 797,422
Small Business Research Assistance 186,000
Technology Commercialization 2,255,728
Oklahoma Manufacturing Alliance 1,109,470
Inventors Assistance 153,641
Seed Capital Fund 14,328,652
Technology Information Services 383,300
TOTAL USES $30,821,814
Estimated Cash Balance 6/30/2012:
Out Year Program Obligations $ 7,084,191
Unobligated Projected Cash Carryover 1,533,497
$ 8,617,688

Fiscal Year 2012
Business Plan
TABLE OF CONTENTS
OSTRaD Board of Directors ....................................................................................................... 1
Purpose ................................................................................................................................... 2
Mission ................................................................................................................................... 2
Vision...................................................................................................................................... 2
FY 2012 Goals and Objectives .................................................................................................. 2
Strategy .................................................................................................................................. 5
Programs ................................................................................................................................ 6
Governance and Operations
OCAST Structure ......................................................................................................... 12
Management Philosophy and Structure ........................................................................ 12
Professional Service Contracts ..................................................................................... 16
Standing Advisory Committees .................................................................................... 16
Finance ....................................................................................................................... 18
Appropriation History ................................................................................................. 18
Planning
Comprehensive Planning ............................................................................................. 19
Financial Planning ....................................................................................................... 21
Program and Service Planning ..................................................................................... 21
Five-Year Appropriation History by Program ........................................................................... 22
Sources and Uses of Revenues ................................................................................................ 22
This publication was issued by the Oklahoma Science and Technology Research and Development Board as authorized
by Title 74 of the Oklahoma Statutes, Section 5060.8. Approved by the OSTRaD Board of Directors on June 21, 2011.
1
BOARD OF DIRECTORS
OCAST is a state agency governed by a 21-member board of directors consisting of the
secretary/executive director of the Oklahoma Department of Commerce, the chancellor of the
Oklahoma State Regents for Higher Education, the secretary of agriculture, the president of the
University of Oklahoma, the president of Oklahoma State University, the president of a private
university, the president of a regional university, twelve members appointed by the governor
and two nonvoting legislators representing the house and the senate. Members appointed by
the governor serve with the consent of the senate and generally serve four-year terms.
Mark Ashton, J.D.
Ashton, Wisener and Munkacsy
Lawton
Galynn Beer
Sales and Budget Director
Agro-Culture Liquid Fertilizers
Guymon
David Boren, J.D.
President
University of Oklahoma
Norman
V. Burns Hargis, J.D.
President
Oklahoma State University
Stillwater
Rhonda Hooper
President and CEO
Jordan Associates
Oklahoma City
Mike Jackson
Oklahoma House of Representatives
Enid
Glen D. Johnson, J.D.
Chancellor
State Regents for Higher Education
Oklahoma City
Clark Jolley, J.D.
Oklahoma State Senate
Edmond
W. Hershel Lamirand III
President and CEO
Oklahoma Health Center Foundation
Oklahoma City
David R. Lopez
Secretary of Commerce and Tourism
Oklahoma Department of Commerce
Oklahoma City
Timothy Mather, Ph.D.
Director of Research Administration
Oklahoma Medical Research Foundation
Oklahoma City
Chelle Melton, D.Ph.
Clinic Pharmacy
Guymon
Dayal T. Meshri, Ph.D.
President and CEO
Advance Research Chemicals Inc.
Catoosa
Jim Reese
Secretary of Agriculture
Oklahoma Department of Agriculture
Oklahoma City
Karl Reid, Sc.D.
Dean of Engineering, Architecture and
Technology
Oklahoma State University
Stillwater
Terry L. Salmon, Ed.D. (Vice Chair)
President and Founder
Computer System Designers LLC
Oklahoma City
E. R. “Tracy” Shirley III
Vice President and CFO
Harrison Gypsum Company
Norman
Edward L. Shreve, Ph.D.
Retired CEO and Businessman
Stillwater
Steadman Upham, Ph.D.
President
University of Tulsa
Tulsa
Sherri Wise (Chair)
President
Osteopathic Founders Foundation
Tulsa
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PURPOSE
The Oklahoma Center for the Advancement of Science and Technology (OCAST) was established
in 1987 as the state’s agency for technology-based economic development. OCAST’s mandate
is to “expand and diversify Oklahoma’s economy and provide new and higher quality jobs for
Oklahomans” by encouraging “. . . the development of new products, new processes and whole
new industries in Oklahoma.” (O.S. 74, Sections 5060.1a and 5060.2A)
MISSION
To foster innovation in existing and developing businesses
 by supporting basic and applied research
 by facilitating technology transfer between research laboratories and businesses
 by providing seed capital for innovative firms in the development of new products or
services
 by helping Oklahoma’s small and medium-sized manufacturing firms become more
competitive through increased productivity and modernization (O.S. 74, Section 5060.3)
VISION
OCAST funds cutting-edge science and technology through processes that are recognized
nationally and internationally for demonstrating excellence, objectivity and economic impact.
OCAST’s vision is continued growth and vitality of its basic premise of facilitating collaborations
between state government, universities, start-up companies and established large-scale firms
to develop an entrepreneurial environment which supports technology-based economic
development. OCAST’s strategy includes technologies such as biosciences, information
technology, sensors and electronics, advanced materials, energy and alternative fuel sources.
Achieving this vision will result in continued growth of advanced technology companies in the
state thereby increasing Oklahoma’s global competitiveness, per capita income and quality of
life.
FISCAL YEAR 2012 GOALS AND OBJECTIVES
Current economic uncertainties will likely have an impact on OCAST’s goals and objectives. The
staff and management of the agency have experience in managing through times of plenty and
the cyclical times of uncertainty. In highlighting the following goals and objectives, we are
keenly aware of the need to be agile and creative in adapting to change. At the same time, we
must be relentless in our dedication and steadfast in our duty to our stakeholders and the goals
of technology-based economic development.
Goal 1: Increase the impact of OCAST’s programs
Objectives
1. Continue to pursue additional funding through grants, cooperative agreements and
other opportunities to enhance and extend OCAST’s core programs and mission.
2. Initiate appropriate strategies to educate, inform and develop consensus among
stakeholders on strategically positioning Oklahoma to compete successfully in a
research and technology-based economy.
3. In response to client requests, maintain a year-round open solicitation for the Intern
program with one application submission date per quarter.
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4. Achieve an OCAST appropriation sufficient to meet market demand for technology-based
economic development programs and support, as defined by OCAST’s advisory
committees, affiliate organizations, clients, stakeholders and board.
5. Continue to review OCAST programs for potential updates, modifications and
opportunities to further streamline program operations to ensure they:
a. keep pace with the dynamic nature of research and advanced technology businesses;
b. operate with optimal effectiveness and efficiency; and
c. respond to new opportunities, within the context of budget and statutory
constraints.
6. Perform outreach to increase participation in OCAST programs by new companies and
new principal investigators.
7. Conduct:
a. one (1) $4 million Health Research competition
b. two (2) OARS competitions not to exceed $4 million
c. one (1) $1.5 million ONAP competition
d. one (1) $750,000 Plant Science competition
e. four (4) Intern Partnership competitions not to exceed $480,000
f. annual performance reviews for previously funded projects
8. Conduct workshops to provide clients with information on writing more effective
applications.
9. Conduct the annual Oklahoma Health Research Conference.
10. Continue to support i2E Inc. in meeting its FY 2012 objectives of managing the
Oklahoma Technology Commercialization Center (OTCC) program, the OCAST
Technology Business Finance Program (TBFP) and the Oklahoma Seed Capital Fund that
includes a new concept fund component.
11. Continue to collaborate with university technology transfer offices, non-profit research
foundations and federal laboratories to advance innovation and commercialization.
12. Continue to support the Oklahoma Manufacturing Alliance in meeting its FY 2012
objectives of assisting small- and medium-sized manufacturers to become
progressively more competitive in their marketplace.
13. Continue to support the Inventors Assistance Service (IAS) in meeting its FY 2012
objectives in assisting inventors with navigating the invention process from idea to the
marketplace.
14. Continue to support the Oklahoma Nanotechnology Initiative (ONI) in meeting its FY
2012 objectives.
15. Collaborate with i2E and other partner organizations to increase the number and quality
of Oklahoma Small Business Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) proposals. Help prepare SBIR/STTR companies for commercialization
through development and implementation of education, technical assistance, outreach
initiatives and collaboration with commercial partners.
16. Through the OCAST-Tulsa office and in cooperation with the Manufacturing Alliance and
i2E partners, become fully integrated into the economic development community of the
northeast region of Oklahoma by:
a. supporting growth and diversity in northeast Oklahoma’s economy; and
b. increasing the number of applications to OCAST programs from the northeast
region.
17. OCAST will provide administrative assistance as requested by the EDGE (Economic
Development Generating Excellence) Board of Investors and the EDGE Fund Policy Board.
18. OCAST will provide administrative/fiscal assistance to the Governor’s Science and
Technology Council as defined in Executive Order 2011-15.
19. Continue to enhance OCAST programs for greater impact across the state. Implement
improvements to impact-reporting processes to provide a more comprehensive and
demonstrable evaluation of OCAST’s programs.
20. Continue to expand and improve the efficiency of statewide program outreach activities.
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21. Continue to meet with individual legislators and statewide elected officials to better
acquaint them with OCAST clients and to inform them of the benefits of OCAST
programs in advancing our state through science and technology.
22. OCAST will continue attending legislative committee meetings to raise awareness of the
impact of pending legislation on existing OCAST programs.
23. OCAST will research technology-based economic development programs in other states
in its quest for continuous process improvement.
24. Continue the contract compliance audits begun in FY 2011 to ensure OCAST contracts
comply with all requirements set forth in the terms of the original contracts.
Goal 2: Increase public awareness of OCAST’s impact on Oklahoma
Objectives
1. OCAST will seek methods to expand audience acceptance of Oklahoma Innovations,
heard each week on the OCAST Radio Network. The program, now in its 16th year, is
produced and broadcast on the Clear Channel Communications Oklahoma flagship
station KTOK. It will be our goal to maintain the program’s integrity while attempting to
ensure a financially viable method for production and distribution to 11 radio station
outlets. The program currently is heard on two stations in Tulsa and one each in
Oklahoma City, Altus, Ardmore, Chickasha, Clinton, Duncan, Lawton/Ft. Sill, Woodward
and Wichita Falls, Texas.
2. Technology Information Services staff will continue and sustain exemplary media
relations to (a) fulfill a long-standing legislative directive to educate Oklahomans about
the benefits of science and technology and (b) help provide lawmakers with information
about OCAST programs and projects. In FY 2010 OCAST expanded media relations in
Tulsa and northeast Oklahoma while continuing to satisfy media needs throughout the
state.
3. OCAST will continually update the OCAST Web page to enhance public awareness of
innovation through OCAST and to provide a portal for Oklahomans seeking access to
OCAST programs. OCAST staff has developed an ongoing working relationship with the
Department of Central Services to secure state-sponsored Web design and development
to (a) satisfy 508 compliance (b) design an easily accessible and aesthetically pleasing
Web site (c) include electronic applications to simplify access to OCAST programs (d)
and expand the scope of OCAST’s services throughout the state. The Web page provides
an additional tool to access Oklahoma Innovations.
4. OCAST will renew the contractual relationship with an in-state marketing firm to
establish a branding process for OCAST to enhance the agency’s position as the leader
in technology-based economic development.
5. OCAST will sponsor and conduct Oklahoma Science and Technology Month in
cooperation with the state’s middle school and high school level science teachers and
create a setting conducive to expanded involvement by educators at the local level. The
year 2011 experienced program acceptance and the governor’s office supported and
assisted OCAST in marketing the effort.
6. OCAST will seek opportunities to target specific geographic areas of the state where we
will conduct activities to upgrade the level of media attention focusing on the value the
agency brings to that specific area of the state.
7. Individualized marketing assistance will be available to established OCAST programs
and initiatives.
8. OCAST has a relatively full suite of opportunities characterized by cooperating with
other agencies and organizations to present a unified front. Such a position will show
strength of Oklahoma’s commitment to advancing innovation and will keep lines of
communication open between OCAST and its partners in the interest of fulfilling the
OCAST mission. OCAST is an active member of the Oklahoma Rural Action Partnership
Program sponsored by the Oklahoma Department of Commerce.
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9. Ensure optimal benefit of OCAST’s collaboration in outside efforts to include, but not be
limited to, The Journal Record Innovator of the Year and Senator Tom Coburn’s grant-writing
workshops.
Goal 3: Continue to implement OCAST process improvements
Objectives
1. Review and improve the staff performance evaluation process in keeping with
requirements of the state Office of Personnel Management.
2. Continue to promote an environment that results in a high performance team.
3. Continuously review processes and procedures to identify and implement efficiencies
throughout the organization.
4. Maintain OCAST consolidated database and continue to incorporate historical data.
5. Enhance services delivered via the OCAST Web site to improve pre- and post-contract
award processes, reduce paper handling and postage costs and streamline other
business transactions for staff and clients.
6. Benchmark current best practices in research and technology-based economic
development through staff participation in national, state and local organizations.
7. Develop and implement a contract compliance workshop for all recipients of OCAST
program awards. Leverage outreach efforts through collaboration with affiliates, other
government agencies and private organizations.
8. Encourage employee career development, including completion of required supervisory
training.
9. Comply with external audits.
10. Continue to upgrade OCAST computer hardware and software as necessary to provide
staff the tools and most efficient means to serve clients.
11. Continue development and implementation of an electronic applications process for all
programs, through;
a. a collaboration with OCAST customers including research institutions and advanced-technology
companies and the Oklahoma Office of State Finance, and
b. beta testing and evaluation with customers.
12. Validate the delivery of contract requirements by continuing post-contract award
compliance reviews.
13. Maintain positive legislative relationships by continuing to respond to legislative
requests within two business days.
STRATEGY
For Oklahoma to increase its competitive advantage and relevance in the 21st Century, it is
imperative to support the process of discovery and development of new ideas, new
technologies and technology transfer that result in commercialization and significant economic
impact for our state and nation. OCAST’s strategy is to advance research and development that
help Oklahoma and its industries compete in the global economy.
Build on public and private sector strengths
 Provide leadership, information and assistance to enhance the ability of Oklahoma
technology companies and researchers to compete in the global marketplace.
 Offer short-term financial incentives and capital access vehicles requiring external
public and private sector co-investment, including concept and seed capital funding, to
better position Oklahoma companies for success.
 Advance economic development by conducting and publicizing studies that call
attention to improvements in technology policies and practices.
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Provide funding based on merit
 Evaluate funding applications according to published procedures and criteria to ensure
funds are awarded to applications with the greatest technical and commercial value.
 Utilize external peer review by recognized experts to make award determinations to
promote objectivity and avoid conflict of interest to the greatest extent possible.
 Work with standing advisory committees to continue to refine and improve OCAST’s
programs and external peer review process.
 Monitor and evaluate program performance on an annual basis to make certain tax
dollars are spent as intended and produce measurable outcomes that maximize the
return on the state’s investment.
Leverage resources for greater results
 Work with partner organizations and stakeholders to leverage their resources to extend
the benefit of the state’s investment.
 Build collaborations with private and public organizations to pursue federal and private
foundation funding to benefit existing programs and fund new initiatives.
 Involve standing or ad hoc advisory committees in all planning efforts.
Promote public and private partnerships and networks
 Continue to build on the Memorandum of Understanding between OCAST and the Oak
Ridge National Laboratory and between OCAST and the Oklahoma City Air Logistics
Center at Tinker Air Force Base to support research institutions and industry in
Oklahoma through collaborative projects and resource sharing.
 Explore opportunities to create additional Memoranda of Understanding with other
government organizations to encourage collaboration with Oklahoma’s research
institutions and private industry, with the goal of improving technology transfer and
increasing market opportunities.
 Work to re-establish the OCAST Centers of Excellence program and improve that
program’s effectiveness through the incorporation of OCAST’s commercialization
services and investment support.
PROGRAMS
OCAST develops, implements, evaluates and modifies programs and services designed to
encourage and enable Oklahoma advanced technology entrepreneurs, researchers and small
businesses to accomplish research and development, technology commercialization and
technology application. Clients return to OCAST programs as often as necessary for assistance.
The programs in the OCAST technology pipeline include:
Oklahoma Health Research
Goal and Strategic Objectives
The health program addresses OCAST’s statutory mandate of supporting health-related
research by allocating resources according to merit and leveraging private and federal
resources while fostering public and private sector collaboration.
Description
The Health program competitively awards seed funds for one- to three-year research projects
related to human health. Eligible applicants are Oklahoma universities and colleges, nonprofit
research organizations and commercial enterprises. These awards enable researchers to gain
expertise and produce data needed to obtain larger grants from other sources, including
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federal agencies and national disease-related funding organizations, and to develop patents
which can lead to new businesses. Researchers also benefit from OCAST’s annual health
research conference which focuses on ways to assist commercial development of new products
and services resulting from health projects.
Performance Measures
This program produces nationally competitive health science research. Private and federal
funding attributed to health projects and the ratio of health support to private and federal
support indicate the program’s effectiveness at securing capital for competitive research. The
amount of intellectual property generated, licenses and royalties are an indication of the
program’s impact on the state’s health science industry.
Oklahoma Plant Science Research
Goal and Strategic Objectives
The plant science program addresses the statutory mandate of supporting basic and applied
research in the field of plant sciences by allocating resources according to merit, promoting
collaborations and leveraging federal and private resources.
Description
The plant science program competitively awards funds for basic and applied research related to
plant science for one- to two-year periods based on technical merit, commitment of resources
and, in the case of applied research, the potential for market success. Eligible applicants are
Oklahoma businesses, institutions of higher education and nonprofit research institutions. The
applied research awards require a minimum of one dollar matching support for each dollar
awarded.
Performance Measures
Basic research projects – performance measures such as the amount of private and federal
funding leveraged by plant science projects, the amount of intellectual property initiated and
the anticipated value of patents, licenses and royalties resulting from these basic research
projects measure program success.
Applied research projects – performance measures include private and federal follow-on
funding attributed to plant science projects, intellectual property, license royalties, jobs
added/retained, payroll of jobs/retained, actual and projected gross sales, sales distribution
and actual and projected cost-avoidance resulting from these applied research projects.
R&D Intern Partnerships
Goal and Strategic Objectives
The intern program provides support for qualified research and development partnership
projects that involve Oklahoma industry and Oklahoma institutions of higher education. It
increases the pool of scientists, engineers, faculty and business entrepreneurs who can
contribute to economic development in Oklahoma.
Description
Projects funded under this program must meet five requirements: (1) an Oklahoma institution
of higher education or a business must be the fiscal agent; (2) OCAST funds must be equally
matched from non-state appropriated funds; (3) the research must be performed in an applied
research laboratory located at a firm, a nonprofit research institute or an institution of higher
education; (4) the mentor must be from industry or be an academic with a documented success
record of applied research and (5) an Oklahoma business must benefit. The award may be for
one or two years. The external reviewers, a majority of whom reside out-of-state, have shown a
preference for programs in which at least 75 percent of the funds (OCAST plus non-state
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match) go directly to the interns as salary and fringe benefits. The remaining funds are used for
principal investigator salary and fringe benefits as well as for supplies to run the program.
Performance Measures
The program produces commercially viable R&D. In addition, student and faculty interns gain or
maintain their interest in remaining in Oklahoma, increase desire for additional technological
education and provide measurable economic progress for the state.
Oklahoma Applied Research Support
Goal and Strategic Objectives
The Oklahoma Applied Research Support (OARS) program addresses the statutory mandate of
supporting applied research and technology development with significant commercial potential
by allocating resources according to merit, promoting collaborations and leveraging federal and
private resources.
Description
OARS competitively awards funds for one- to three-year projects from any technology area
based upon technical merit, potential for market success and commitment of resources. The
program requires a minimum of one dollar matching support for each state dollar awarded.
Eligible applicants are Oklahoma businesses and universities, colleges or nonprofit research
organizations that have industrial partners. The program gives preference to projects involving
collaboration between research institutions and private industry.
Performance Measures
This program produces commercially viable R&D. Federal and private funding attributed to
OARS projects and the ratio of OARS awards to private and federal support demonstrate the
program’s effectiveness at securing capital. Performance measures such as the value of
intellectual property, license royalties, jobs added/retained, payroll of jobs added/retained,
actual and projected gross sales and actual sales distribution and projected cost-avoidance
indicate the program’s effectiveness at technology transfer and the commercial value of
Oklahoma R&D projects.
Small Business Research Assistance
Goal and Strategic Objectives
The Small Business Research Assistance (SBRA) program addresses the statutory mandate of
supporting applied research and facilitating technology transfer involving small private for-profit
businesses by leveraging federal and private resources and promoting action,
encouraging strategic partnerships between firms and research institutions and promoting
commercialization of new technologies.
Description
Through the federal Small Business Innovation Research (SBIR) program, federal agencies
provide seed support for product feasibility studies and prototype development that is lacking
in the private investment community. The federal Small Business Technology Transfer (STTR)
program accomplishes this purpose and forges research collaborations between small firms and
universities or nonprofit research institutions. Both the SBIR and STTR programs encourage
transfer of technology into federal agency programs and private sector applications. OCAST’s
program supports these goals by defraying a portion of a qualifying firm’s federal SBIR or STTR
Phase I proposal preparation costs and providing bridge funding between Phase I and Phase II
federal SBIR and STTR grants. The program provides technical assistance to improve the quality
of proposals through proposal development workshops, proposal reviews, client referrals and
partnership with i2E’s new SBIR support services. The program offers companies guidance in
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accessing additional OCAST support and other resources as appropriate to their respective
stage of development.
Performance Measures
This program produces nationally competitive applied research, development and technology
commercialization. Federal and private funding attributed to projects and the ratio of OCAST
support to private and federal support indicate OCAST’s effectiveness at securing capital for
applied research and development. Performance measures such as the increase in federal
contracts, jobs added/retained and payroll of jobs added/retained indicate the successful
commercialization of technology by firms participating in the SBRA program.
Inventors Assistance Service
Goal and Strategic Objectives
OCAST contracts with Oklahoma State University to operate the Inventors Assistance Service
(IAS) program through the university’s New Product Development Center. The service addresses
the statutory mandate to provide Oklahoma inventors with information and training on
developing their invention and on issues related to patenting/licensing, marketing and
manufacturing. The service offers workshops, a Web site, referrals and on-site business and
technical consultations.
Description
The program assists the independent inventor in navigating the process from idea to
marketplace. IAS helps inventors move toward the manufacturing, marketing and distribution of
their products by providing assistance and information or referring inventors to appropriate
service providers who will help them deal with specific steps in the invention process. By
providing assistance and information or by referring inventors to appropriate service providers
who will help them deal with specific steps in the invention process, the program provides
inventors with a streamlined process to help move their innovation forward. Qualified inventors
nearly ready for commercialization receive help with activities such as materials testing,
marketing, engineering specifications and prototype development.
Performance Measures
Performance measures are specified in statute and include the number of clients, participants in
workshops, value of patents, license royalties, jobs created or retained and number of clients
progressing into other OCAST and federal programs.
Oklahoma Technology Commercialization Center
Goal and Strategic Objectives
The Oklahoma Technology Commercialization Center (OTCC) program addresses the statutory
mandate of facilitating technology transfer and commercialization and providing pre-seed and
seed capital for new innovative firms. The program operates under contract with OCAST and is
the product of OCAST’s strategy of promoting collaborations, allocating resources according to
merit, stimulating action and leveraging private resources.
Description
OCAST currently contracts with i2E, a private nonprofit organization, to operate the OTCC
program that assists entrepreneurs, early-stage technology companies and firms seeking to
commercialize new technologies. The program focuses on assessing needs, guiding clients
through the commercialization process and linking them to a comprehensive network of
technology sources (including Oklahoma universities) and commercialization services. The
program also provides specialized business development services, access to early-stage risk
financing and help in transferring technology. Beginning in FY 2012 OTCC, will include business
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development and commercialization services specifically targeted to Oklahoma’s SBIR and STTR
companies.
Performance Measures
Performance measures include number and type of project clients, activities with all clients,
amount and type of financing obtained for clients, jobs created and average wage/salary of new
technology-based companies.
OCAST Technology Business Finance Program
Goal and Strategic Objectives
The Technology Business Finance Program (TBFP) was authorized in the Technology Transfer
Act of 1998 to address the mandate of providing early stage capital to innovative firms and
manufacturers and for leveraging private investment capital.
Description
This program is designed to promote promising innovation and to support efforts to
commercialize in Oklahoma by providing early stage financing. The program requires a match
and includes payback provisions. OCAST contracts with i2E Inc. to operate this program.
Performance Measures
Performance measures include the number of start-up firms and/or manufacturers assisted,
survival rate of those organizations, amount of repayments and leveraging of other private and
federal dollars. In addition, the program manager submits an economic impact analysis of the
program, including such items as jobs and average annual salaries of jobs created/retained.
OCAST Seed Capital Program
Goal and Strategic Objectives
The seed capital program has been crafted to be an economic development tool with a goal of
making investment in early stage companies engaged in the commercialization of promising
new technologies in Oklahoma. Growing innovative Oklahoma companies that attract other
investment as they successfully commercialize their products and services is the ultimate goal.
Description
In general, through its seed capital program, OCAST seeks to provide funding to innovative
Oklahoma companies. The statute and the related constitutional amendment allow the state to
take an equity or debt position with firms – an authority that is unique to OCAST as a state
agency. Required co-investment with the private sector leverages the agency’s investment.
By statute OCAST was given multiple options as to how it could use appropriated funds to meet
economic development goals for seed capital stage companies. OCAST invests in Oklahoma
Seed Capital Fund LLC, currently managed as a wholly owned subsidiary of i2E Inc. Other fund
investors have included the Oklahoma Capital Investment Board (OCIB) and the Oklahoma
Development Finance Authority (ODFA). OCAST is the largest contributor to the fund and is the
Class A member, which includes the right to review and approve all proposed term sheets with
the advice of its investment committee.
Beginning in FY 2012, the Seed Capital program will include a concept fund intended to address
the needs of companies requiring smaller seed capital investment for earlier-stage projects.
Unlike TBFP, awards from the concept fund are convertible should the client pursue larger seed
capital investment at a later date.
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Performance Measures
Performance measures include the leverage of private investment funds, business finance
impacts resulting from OCAST investment (including job growth and economic impact on the
state) and expanding availability of investment capital for technology business development.
Oklahoma Nanotechnology Applications Project
Goal and Strategic Objectives
The Oklahoma Nanotechnology Applications Project (ONAP) is authorized by statute. This
project assists qualified Oklahoma companies with application of nanotechnology through
research, development and manufacturing and helps them improve current or create new
cutting-edge products or processes. These awards encourage nanotechnology collaboration
between industry, institutions of higher education and nonprofit research institutions.
Description
ONAP competitively awards funds for one- to three-year research and development projects
with an emphasis on nanotechnology applications in product development supporting the
Oklahoma manufacturing and business community. Universities must collaborate with private
industry to be eligible to participate in this program.
OCAST will contract to support the management of the Oklahoma Nanotechnology Initiative
(ONI). ONI provides a focus on the promotion and support of business, academic,
manufacturing, employment and investment initiatives related to nanotechnology and
coordinates activities on a regional basis for the benefit of Oklahoma. It provides education to
Oklahoma manufacturers and businesses as to the potential benefits of nanotechnology in
product and process innovation to help them better understand nanotechnology applications.
ONI also helps to identify potential applicants for ONAP funding and hosts the annual Oklahoma
nanotechnology symposium (Oklahoma NanoFocus).
Performance Measures
Performance measures include the number of nanotechnology applications funded, the number
of manufacturers and businesses educated, the number of regional and in-state collaborations
initiated and/or achieved, the number of jobs created or retained and the average wage/salary
of those jobs, the increase in gross sales and the number of manufacturers and businesses
served. The private and federal dollars leveraged by ONAP will also serve as an indicator of
overall performance.
Oklahoma Manufacturing Alliance
Goal and Strategic Objectives
The Oklahoma Manufacturing Alliance, an OCAST partner organization, addresses the statutory
mandate of stimulating manufacturing productivity and modernization. The Manufacturing
Alliance is nationally recognized for excellence in terms of its ability to respond quickly,
encourage action and leverage federal and private resources.
Description
The Oklahoma Alliance for Manufacturing Excellence Inc. is a private, nonprofit organization
that manages the programs which provide leadership and assistance to Oklahoma’s small- and
medium-sized manufacturers to help them become progressively more successful in their
marketplace. Through a network of extension agents and applications engineers, the
Manufacturing Alliance delivers real, hands-on resources for improving productivity, increasing
sales and reducing costs. Using federal, state, local and private funds, the Oklahoma Alliance
for Manufacturing Excellence Inc. contracts with local organizations to field regional
manufacturing extension agents who deliver to Oklahoma manufacturers services in technology
application, workforce training, financing, market assessment and business relations.
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Applications engineers, sponsored in part through Oklahoma State University, provide technical
assistance to manufacturers in rural areas where resources are limited. These locally accessible
applications engineers assist with mechanical designs, plant layouts and a variety of other
technical issues. OCAST provides a portion of the state funding and oversight for the system by
means of an annual contract with the Oklahoma Alliance for Manufacturing Excellence Inc.
Performance Measures
This program measures productivity through such measures as jobs created/retained, cost
savings, efficiency improvements, cost avoidance and capital investment.
GOVERNANCE AND OPERATIONS
Structure
Management Philosophy and Structure
OCAST’s management functions as a team, the success of which depends heavily upon the
cooperation, contribution and commitment of each player. The teamwork concept extends to
OCAST’s interactions with other agencies, organizations and stakeholders.
OCAST works closely with the business and financial sector to stimulate innovation in existing
and developing Oklahoma businesses. Therefore, in accordance with statute, all staff positions
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are unclassified, governed and compensated in a manner that compares to similar positions in
the private sector and, as listed below, are exempt from the Oklahoma Personnel Act.
Following is a list of approved positions:
Executive Director – Directs the administrative affairs and general management of OCAST.
Develops and directs implementation of strategic plans and policy related to OCAST’s
mission. Presents and communicates with governor, legislative subcommittees and
legislative leadership regarding OCAST’s annual budget request and any pending statutory
changes relevant to OCAST. Communicates regularly with local, state and national leaders
and organizations about OCAST and the importance of scientific research and the growth of
knowledge-based businesses to Oklahoma’s economy. The executive director is
accountable to the OSTRaD board. Unclassified / Annual salary of $96,027 effective July 1,
2009
Deputy Director – Responsible for the operations as assigned by, or in the absence of, the
executive director. Responsibilities include directing the formulation, implementation and
evaluation of programs, policies, procedures and standards; development of operating
plans, annual budgets and performance measures; represents OCAST at various meetings at
the local, state and national level. The deputy director is accountable to the executive
director. Unclassified / $70,000 - $85,000
Director, Administration and Finance – Responsible for the general administration of the
administration and finance division including developing appropriation requests and
operating budgets; developing, implementing and administering administrative procedures
for accounting, purchasing and office administration; maintaining all official records of the
board and agency. The director, administration and finance, is accountable to the executive
director in the handling of the agency’s general administrative affairs and finances including
the disposition of highly confidential proprietary material submitted by applicants.
Unclassified / $65,000 - $80,000
Director, Programs – Responsible for the general administration of the programs division
including the development, administration, evaluation and revision of research funding
programs, technology development and transfer activities and management of confidential
proprietary material submitted by applicants. Directs the staffing of program operations,
advisory committees, development and revision of program specifications, rules,
regulations and division budget and appropriation requests. The director of programs is
accountable to the executive director. Unclassified / $65,000 - $80,000
Director, Government Relations and Strategic Initiatives – At the direction of the executive
director, directs the design, development and implementation of agency legislative goals
and strategy for securing desired legislative and executive action and coordinates legislative
activities with all OCAST divisions. Proposes and drafts legislation relevant to new OCAST
programs. Serves as key strategic advisor to executive director. Coordinates with OCAST
staff to identify and document OCAST programs and services requiring assistance and
support of the legislature and governor. Directs special projects assigned by the executive
director. Directs research studies and reporting on various topics regarding technology-based
economic development. Represents agency before and organizes and facilitates
OCAST communication with public officials and local, state and national organizations.
Unclassified / $65,000 - $80,000
Associate Director – Responsible for designing, implementing, operating and evaluating
division programs and activities, as assigned. Recommends new programs and activities
related to the OCAST mission. A senior level technical strategist with a global perspective of
all programs to build collaborative efforts across academia, industry and government.
Supervises employees, as assigned. Responsible for the general administration of the
division in the absence of the director. Associate directors are accountable to supervising
directors and to the executive director for the correct disposition of highly confidential and
14
proprietary material submitted by applicants for OCAST funding and assistance.
Unclassified / $50,000 - $65,000
Public Information and Rural Outreach Manager – Writes articles and hosts radio and
television productions on the subject of technology-based economic development and
relevant Oklahoma programs and initiatives. Coordinates OCAST’s message with media
outlets and the general public. Works with related organizations such as chambers of
commerce and the Oklahoma Department of Commerce to promote Oklahoma research and
advanced technology companies. Responsible for facilitating cooperation in rural
technology-based economic development initiatives. This position reports to the director,
government relations and strategic initiatives. Supervises employees, as assigned.
Unclassified / $55,000 - $70,000
Client Services Manager – Responsible for the direct support of clients by facilitating
partnerships between small businesses and federal funding agencies to promote
commercialization of new technologies. Provide companies technical assistance in accessing
all OCAST programs and other resources as appropriate to their respective stage of
development. Unclassified / $45,000 - $60,000
Programs Officer IV – Supervises the planning, coordination or direction of a component of the
agency or program(s) established to accomplish a basic goal or mission of the agency. May
supervise one or more employees and/or contractors. Represents OCAST at conferences,
meetings and hearings related to OCAST’s administrative operations. Unclassified /
$45,000 - $60,000
Programs Officer III – Under minimal supervision, plans, coordinates or directs a component of
the agency or program(s) established to accomplish a basic goal or mission of the agency.
May supervise one or more employees and/or contractors. Represents OCAST at
conferences, meetings and hearings related to OCAST’s administrative operations.
Unclassified / $40,000 - $55,000
Programs Officer II – Under general supervision, plans and coordinates a component of the
agency or program(s) established to accomplish a basic goal or mission of the agency. May
supervise one or more employees and/or contractors. Represents OCAST at conferences,
meetings and hearings related to OCAST’s administrative operations. Unclassified /
$35,000 - $50,000
Programs Officer I – Under direct supervision, assists in developing, implementing, evaluating
and managing programs or program functions including program services and/or events.
May staff program advisory committees, including producing reports for board and/or
committee action. Administers small programs and projects, as assigned. Conducts surveys
and compiles and interprets results; provides consultation to staff to aid in the development
of appropriate assessment and evaluation for programs and services. Unclassified /
$30,000 - $45,000
Accountant IV – Responsible for accounting activities involving the supervision and direction of
accounting operations including planning, reviewing and organizing the work of assigned
staff; assuring availability of funds, preparing analysis of expenditures and monthly reports
of operations, financial statements, schedules and financial statistical data; working with
private sector clients and vendors as necessary in resolving problems. Unclassified /
$45,000 - $60,000
Accountant III – Under minimal supervision, classifies and posts revenues and expenditures.
Assures availability of funds for agency obligations and expenditures. Maintains accounting
records and files documenting financial transactions. Prepares analyses of expenditures and
monthly reports of operations, financial statements, schedules and financial statistical data.
Works with private sector clients and vendors in resolving invoicing and payment issues.
May supervise employees as assigned. Unclassified / $40,000 - $55,000
15
Accountant II – Performs a wide range of tasks involving the maintenance, analysis,
interpretation and reporting of financial accounting data and the application of generally
accepted accounting principles and theories in the management of financial accounts.
Includes maintenance of highly diverse accounts, financial analysis and reporting,
reconciliation of accounting data, reviewing and processing financial documents for
payment and similar responsibilities. Unclassified / $35,000 - $50,000
Assistant to the Executive Director – Under minimal supervision, assists the executive
director in managing the administrative affairs of OCAST. Serves as secretary to the board
and agency liaison with the governor’s office and the secretary of state. Organizes activities
and information associated with OCAST’s five-year and annual planning processes, assists
with agency projects and organizes the executive director’s time, confidential files and
correspondence. The assistant to the executive director is accountable to the executive
director in performing all duties. Unclassified / $30,000 - $45,000
Office Manager – Performs a wide range of tasks supporting the overall administrative and
information technology operations of the agency. Manages everyday tasks necessary for the
efficient running of the agency and is responsible for front-desk reception duties, ordering
agency office supplies and other assigned administrative and accounting duties. Position is
responsible for managing the flow of internal information for the agency including incoming
and outgoing mail, faxes and agency deliveries. Serves as the primary point of contact for
all facility related office equipment and technology issues. Other general tasks include
supporting agency personnel with communications and scheduling. Unclassified /
$30,000 - $45,000
Administrative Assistant II – Under general supervision, may assist in administering the
activities associated with developing, implementing, operating and evaluating programs and
functions. Assists in staffing board, committees, subcommittees and conferences including
preparing necessary materials and preparing minutes of meetings and setting-up and
maintaining files and records; may gather and summarize information for staff or
committee action. Composes and prepares program and administrative documents and
correspondence. Determines when to provide information to the public regarding routine
services, policies and regulations and when to refer it to a senior staff member for official
action or decision. Duties may also include reading, sorting, distributing and maintaining a
log of incoming and outgoing materials. May perform duties of receptionist. Unclassified /
$25,000 - $40,000
Administrative Assistant I – Under direct supervision, assists in administering the activities
associated with developing, implementing, operating and evaluating programs, including
assisting with conferences, workshops and other events. Prepares program documents and
correspondence. Assists in staffing board or program advisory committees, including
preparing meeting minutes and materials and maintaining required files and records. Duties
may also include reading, sorting, distributing and maintaining a log of incoming and
outgoing materials. May perform the duties of receptionist. Unclassified / $20,000 -
$35,000
Additional positions approved but not currently in use include:
Account Clerk
Accountant I
Administrative Services Manager I and II
Assistant Director
Comptroller
Director, Technology Information
Services
Human Resources Manager
Information Systems Network
Management Specialist III
MIS Coordinator
Program Coordinator I, II and III
Program Manager
Programs Officer I
Research Analyst
Senior Manager, Management Information
Systems
Senior Outreach Liaison
Senior Program Manager
16
Professional Service Contracts
OCAST uses professional service contracts to supplement capabilities and maintain low
administrative costs. Functions exist which, due to statutory or program requirements of highly
specialized and diverse expertise or infrequency, are more effectively and efficiently performed
by contract.
Some, though not all, specific professional services contracts can be anticipated at the outset of
the fiscal year. As of the date of submission of this business plan, the staff intends to execute
the following professional services contracts in FY 2012:
 Office of the State Auditor and Inspector for annual audit services, in an amount not to
exceed $30,000
 Office of Attorney General for legal services, one-half time for one year, in an amount
not to exceed $46,000
 Contract for an information technology enhancement of program database and
development and installation of an electronic application system to support the
programs division processes and data management in an amount not to exceed
$450,000
 Contract with Office of State Finance for IT services including personal computer
support, network support and database hosting not to exceed $50,000
 Continuation of contracts with Clear Channel Communications and Cox Radio KRMG for
the weekly radio show Oklahoma Innovations, in an amount not to exceed a total of
$50,700
 Contract with an in-state marketing firm to enhance the agency’s position as the leader
in Oklahoma technology-based economic development in an amount not to exceed
$40,000
 Continue contracting with the Oklahoma Alliance for Manufacturing Excellence Inc. to
operate the Oklahoma Manufacturing Alliance in an amount not to exceed $1,109,470
 Contract support for the operation of the Oklahoma Nanotechnology Initiative in an
amount not to exceed $100,000
 Continue contracting with Oklahoma State University to operate the Inventors Assistance
Service in an amount not to exceed $153,641
 Continue contracting with i2E Inc. to operate the Technology Business Finance Program
in an amount no to exceed the repayments and carryover funds currently in the program
plus an annual management fee of $194,487
 Continue contracting with i2E Inc. to operate the Oklahoma Technology
Commercialization Center in an amount not to exceed $1,808,241
 Contract with i2E Inc. to manage the Oklahoma Seed Capital Fund not to exceed
$375,000
 Contract with Presbyterian Health Foundation, dba Oklahoma Health Center Research
Park Corporation, to operate a technology-business incubator located in the Oklahoma
Health Center Research Park and appropriately equipped to meet the needs of start-up,
technology-intensive firms including, but not limited to, bio-technology and biomedical
firms (Title 74. Chapter 70, Section 5060.29) $100,000
Standing Advisory Committees
OCAST receives support and assistance from the Oklahoma Health Research, Oklahoma Plant
Sciences Research, Oklahoma Applied Research and Small Business Research Assistance
advisory committees for research-related programs. Research-related standing committees
must consist of representatives of the “business, higher education and research communities
(74 O.S., Section 5060.9[a])” and at least one-third of the members of each committee must be
researchers. Committees are approved annually by the board. The Seed Capital Investment
17
advisory committee is created to assist OCAST in evaluating potential investments with the Seed
Capital Revolving Fund (74 O.S., Section 5060.21).
Oklahoma Applied Research Advisory Committee
Kenneth E. Bartels, D.V.M., M.S.
Oklahoma State University
David Humphrey
Oklahoma Equity Partners
Larry Kennedy
Oklahoma Medical Research Foundation
E. Ann Nalley, Ph.D.
Cameron University
Karl Reid, Sc.D., P.E.
Oklahoma State University
E.R. “Tracy” Shirley III
Harrison Gypsum Company
Ed Shreve, Ph.D. (chair)
Stillwater
Dale Teeters, Ph.D.
University of Tulsa
Monte Tull, Ph.D.
University of Oklahoma
Oklahoma Health Research Committee*
William Canfield, M.D., Ph.D.
Cytovance Corporation
Tyrrell Conway, Ph.D.
University of Oklahoma
Mary Beth Humphrey, M.D. Ph.D.
University of Oklahoma Health Science
Center
Katherine M. Kocan, Ph.D.
Oklahoma State University
Jerry Malayer, Ph.D.
Oklahoma State University
Rodger McEver, M.D. (chair)
Oklahoma Medical Research Foundation
Kenton Miller, Ph.D.
University of Tulsa
Mack Roark, D.Min.
Shawnee
Hal Scofield, M.D.
Oklahoma Medical Research Foundation
*Appointed by the governor
Oklahoma Nanotechnology Applications Project Committee
Larry Grable, J.D.
Tomlinson & O’Connell P.C.
Jim Mason
Oklahoma Nanotechnology Initiative
David Schmidtke, Ph.D.
University of Oklahoma
Dale Teeters, Ph.D. (chair)
University of Tulsa
Ranji Vaidyanathan, Ph.D.
Oklahoma State University
Oklahoma Plant Sciences Research Advisory Committee
Peter Camfield, Ph.D.
Oklahoma Panhandle State University
Ronald L. Elliott, Ph.D., P.E.
Oklahoma State University
Rod Moesel (chair)
American Plant Products and Services Inc.
Richard Nelson, Ph.D.
Samuel Roberts Noble Foundation
David Porter, Ph.D.
Oklahoma State University
18
Seed Capital Investment Committee
James Dickson
BancFirst
David McKinney, J.D.
GableGotwals
Larry Pulliam
Southern Oklahoma Memorial Foundation
James Wheeler, Ph.D.
University of Oklahoma Price College of
Business
Sherri Wise
Osteopathic Founders Foundation
Small Business Research Assistance Committee
Colin Cumming
ICx Nomadics Inc.
Phillip Free, J.D.
Crowe and Dunlevy
James Grimsley, (chair)
Design Intelligence Inc.
Dorothy Overal
U.S. Small Business Administration
Ann Patten
Scrub Oak Technologies
Kay Wade
Logan County Economic Development
Council
Finance
OCAST’s programs, activities and general operations are financed primarily through state
general revenue appropriated funds. OCAST’s enabling statute authorizes the use of three
funds: the General Administration and Data Processing Fund, the Research Support Revolving
Fund and the Seed Capital Revolving Fund. Each of the three funds is authorized to accept state
general revenue appropriations, grants, gifts and donations. The Seed Capital Revolving Fund is
authorized to accept loan repayments and investment proceeds. Each fund is authorized to
finance specific activities of the agency.
The majority of OCAST’s annual state appropriation is transferred to the Research Support
Revolving Fund for operation of all OCAST programs. As instructed by the state legislature,
House Bill 2182 directs $3,966,355 to be paid to the Seed Capital Revolving Fund for FY 2012.
These funds will be transferred from the Research Support Revolving Fund to the Seed Capital
Revolving Fund in monthly allocations. The revolving funds have no fiscal year limitations. All of
the agency’s expenditures must be confirmed by Oklahoma’s Office of State Finance to be
consistent with an annual budget work program approved by that office.
Appropriation History
19.2
22.4 22.0
14.1
12.7
15.6
3.1
8.1 7.3 6.4 6.4 6.0 6.0
9.0
11.7 11.6 12.1 12.7
11.6 11.0 11.6 12.4
22.4 22.9
17.8
$0
$5
$10
$15
$20
$25
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Fiscal Year
millions $
19
PLANNING
Comprehensive Planning
OCAST produces an annual business plan and a five-year strategic plan. Based on data provided
by the National Science Foundation, OCAST benchmarks its funding compared with similar state
agencies in other states, especially those in the same region. Support of R&D funding by state
legislators in the region continues, although only one nearby state, Kansas, invests more in
technology-based economic development (TBED) than the national average of all U.S. states.
The National Science Foundation’s measure of state agency R&D expenditures per one million
dollars of the state gross domestic product is shown in Chart 1 below1. In the region, Oklahoma
ranks the third highest in state agency expenditures per $1 million of state gross domestic
product. Rankings did change for other regional states. Kansas with $100 per $1 million of
state gross domestic product, dropped from $130 the previous year while maintaining its No. 1
regional ranking. Missouri also lost ground by decreasing from $84 to $68 and coming in
fourth behind Oklahoma at $79. Oklahoma’s investment increased from $69 the previous year.
Arkansas increased its investment from $54 to $81, jumping from fourth place behind
Oklahoma the previous year, to second place in the region.
Chart 1: State Agency R&D Expenditures per
$1 Million of State Gross Domestic Product
26
79 81
100
9
32
51
68
0
20
40
60
80
100
120
NM TX LA CO MO OK AR KS
Due to NSF survey differences, the metric should be interpreted as a rough measure of the ratio
between the amount of state agency R&D funding and the size of a state’s economy.
U.S rankings show an average of $89. Among the eight regional states, only Kansas surpasses
the national average state expenditure per $1 million of state gross domestic product.
States Continue Tech-Based Investments
Although most all states struggled with state budgets due to the recession, several states found
funding to advance tech-based economic development. For example:
 Georgia’s Centers of Innovation program will be integrated with the programs of the
Georgia Research Alliance (GRA). The goal for integrating the programs is twofold: to
maximize potential for high-tech companies generated from university R&D, and to
1 National Science Foundation (NSF), Science and Engineering Indicators, 2010. Data excludes state-run colleges and
universities as well as laboratories or experiment stations controlled by universities; funding from these institutions is
collected and classified as academic R&D expenditures. Data may include some non-R&D activities such as
commercialization.
20
leverage the resources of Georgia’s research universities to retain and recruit companies
in industries considered crucial to the state’s growth. GRA is slated to receive $7.5
million in FY 2012, which includes $3 million in bond funding to purchase equipment
and fund R&D infrastructure. This is a decrease from the $16.7 million revised FY 2011
budget.
 Colorado Governor John Hickenlooper signed into law a tax break on agricultural
products and an extension of a tax-credit program for angel investors. That measure
continues a program offering tax credits to investors who give at least $25,000 to a
small Colorado business that is less than five years old and is involved in the research,
development or manufacturing of new technologies, products or processes.
 Bioscience Connecticut will improve the capacity and productivity of research, enabling
the University of Connecticut Health Center to double federal and industry bioscience
research grants. The result will be new technologies that can be transferred to industry,
strengthening the competitiveness of existing Connecticut businesses and creating new
enterprises. Connecticut Governor Dannel P. Malloy says the law will improve access to
health care.
 Illinois Governor Pat Quinn has launched the Illinois Innovation Network (IIN) to give
entrepreneurs resources needed to build and grow businesses and jobs. The governor
announced Illinois is joining in the national effort to promote high-tech
entrepreneurship by connecting the IlN with Startup Illinois, a component of the Startup
America Partnership announced by President Obama earlier this year. Startup Illinois will
let Illinois-based affiliates and entrepreneurs leverage technology, content and tools to
access national resources, and celebrate local startup successes on a national stage.
 Maryland is accelerating and leveraging its investment in the space industry. Governor
Martin O’Malley has unveiled a bold new initiative to increase business development and
commercialization opportunities of the state’s space industry. Maryland hopes to
leverage federal facilities and institutions of science and discovery to unlock economic
potential of the state’s space sectors.
State Science and Technology Indicators
NSF uses 52 indicators to measure state science and technology infrastructure, of which 20 are
listed in the accompanying table. The other 32 indicators are related to elementary and
secondary education, higher education and workforce and were not included in the table below.
The NSF science and technology indicators listed in the table below are related to financial R&D
inputs, research development outputs and S&T in the economy. Of the 20 indicators, Oklahoma
strengths included eight measures in the 2nd quartile and two measures in the 3rd quartile,
with the remaining measures providing opportunities for improvement.
National Science Foundation Oklahoma S&E Indicators2
Indicators Year
Financial Research and Development Inputs
R&D as Share of Gross Domestic Product 4th quartile
Federal R&D Obligations per Civilian Worker 4th quartile
Federal R&D Obligations per Individual in S&E Occupation 4th quartile
State Agency R&D Expenditures per $1 Million of Gross Domestic Product 3rd quartile
State Agency R&D Expenditures per Civilian Worker 3rd quartile
State Agency R&D Expenditures per Individual in S&E Occupation 3rd quartile
Business-Performed R&D as Share of Private-Industry Output 4th quartile
Academic R&D per $1,000 of Gross Domestic Product 3rd quartile
Research and Development Outputs
S&E Doctorates Conferred per 1,000 S&E Doctorate Holders 2nd quartile
2 NSF Science and Engineering Indicators, State Indicators Section, Chapter 8, 2010.
21
Academic S&E Article Output per 1,000 S&E Doctorate Holders in Academia 3rd quartile
Academic S&E Article Output per $1 Million of Academic R&D 2nd quartile
Academic Patents Awarded per 1,000 S&E Doctorate Holders in Academia 3rd quartile
Patents Awarded per 1,000 Individuals in S&E Occupations 3rd quartile
Science and Technology in the Economy
High-Technology Share of All Business Establishments 3rd quartile
Net High-Technology Business Formations as Share of All Business Establishments 2nd quartile
Employment in High-Technology Establishments as Share of Total Employment 3rd quartile
Average Annual Federal SBIR Funding per $1 Million of Gross Domestic Product 4th quartile
Venture Capital Disbursed per $1,000 of Gross Domestic Product 4th quartile
Venture Capital Deals as Share of High-Technology Business Establishments 4th quartile
Venture Capital Disbursed per Venture Capital Deal 4th quartile
States that excel in these rankings rely on continued federal, state and private investments in
technology-based economic development.
Financial Planning
OCAST is required by statute to “recommend an appropriate level (of funding for OCAST’s
programs) . . . that will make these programs nationally competitive with those of other states”
and to “adopt . . . a threshold funding level for each of the programs . . . that is great enough to
have a significant impact and carry out the intent of this act.” (74 O.S., Section 5060.22)
After the governor and legislature approve the OCAST appropriation, staff and board members
develop a business plan for the application of available resources, abiding by the directives and
constraints on spending articulated in the signed appropriation bills. Unless established
otherwise by the board, the threshold funding levels are the FY 2012 appropriation levels
shown in this plan (see Five Year Appropriation History by Program below).
Program and Service Planning
OCAST develops and initiates new programs and services by building consensus among
constituents and stakeholders, which may include standing and ad hoc program advisory
committees, higher education and career-tech representatives, nonprofit organizations,
businesses, other agencies and state leaders. Most OCAST programs are initiated through
legislative intent.
When it is evident a need or opportunity should be an OCAST priority and is consistent with
OCAST’s mission, staff checks relevant statutes and, when necessary, consults with the state
Office of the Attorney General to determine whether OCAST’s general authorization covers the
need/opportunity. If so, a recommendation is submitted to the OSTRaD board.
Specifications for each new program are designed by OCAST staff working in consultation with
a standing or ad hoc advisory committee and the Office of the Attorney General. Appropriate
state and national experts are frequently consulted in this phase of program design. The board
may provide advice and guidance.
The information is presented to the OSTRaD board for consideration and approval.
22
FIVE YEAR APPROPRIATION HISTORY BY PROGRAM
Activities FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
General Administration $ 690,750 $ 690,750 $ 850,000 $ 739,075 $ 687,340
Program Services and Support 0 0 1,354,675 1,368,970 1,304,000
Health Research 4,823,619 4,594,117 4,253,299 4,000,000 4,005,219
Applied Research 4,160,760 4,428,545 3,907,100 1,900,000 2,341,616
Intern Partnership Program 558,994 558,994 599,149 260,000 241,800
Plant Science Research 600,000 702,568 567,983 709,656 659,980
Nanotechnology Research 1,221,302 1,421,302 1,437,100 1,500,000 720,000
Manufacturing Extension Services 1,575,453 1,532,166 1,372,028 1,192,978 1,109,470
Technology Commercialization 3,233,657 3,247,319 2,914,776 2,534,398 2,052.728
Small Business Research Assistance 371,070 377,648 338,500 200,000 186,000
Inventors Assistance 223,567 184,483 190,000 165,205 153,641
Technology Information Services 347,335 368,615 373,031 316,916 383,300
Seed Capital Fund 650,000 4,350,000 3,868,922 4,264,898 3,966,355
Bioenergy Center 4,000,000 0 0 0 0
Biofutures Institute 500,000 0 0 0 0
TOTAL FUNDING$22,956,507 $22,456,507 $22,026,563 $19,152,096 $17,811,449
ADMINISTRATIVE COSTS 3.01% 3.08% 3.86% 3.86% 3.86%
SOURCES AND USES OF REVENUES
Sources:
Reserves for OCAST Out-Year Obligations $ 9,763,979
Reserves for Seed Capital Obligations 10,362,297
Projected FY-2011 Available Carryover 1,501,777
FY-2012 State Appropriated Revenues 17,811,449
TOTAL SOURCES $39,439,502
Uses:
Projected FY-2012 Expenditures
Administration $ 687,340
Program Services 1,629,000
Programs
Health Research 4,585,443
Applied Research 3,039,587
Intern Partnership Program 354,276
Nanotechnology Research 1,311,955
Plant Science Research 797,422
Small Business Research Assistance 186,000
Technology Commercialization 2,255,728
Oklahoma Manufacturing Alliance 1,109,470
Inventors Assistance 153,641
Seed Capital Fund 14,328,652
Technology Information Services 383,300
TOTAL USES $30,821,814
Estimated Cash Balance 6/30/2012:
Out Year Program Obligations $ 7,084,191
Unobligated Projected Cash Carryover 1,533,497
$ 8,617,688